Interim Report
Interim Report

Commentary on the unaudited results for the period ended 30 June 2017

The bank continued to see growth in its deposit-taking activities over the past 12 months, with deposits from customers increasing by R386,1 million or 8,7% for the 12-month period since June 2016, while the growth for the six months ended 30 June 2017 amounted to R199,8 million or 4,3%. The bank has also achieved an overall advances growth of R391,0 million or 10,2% year-on-year and R109,3 million for the six months ended 30 June 2017.

With the growth in deposits, surplus cash which is invested in Shariah-compliant equity finance has increased by R110,5 million or 16,8% year-on-year. There has been a significant increase in equity finance since December 2016 of R237,7 million or 44,7%. Cash and cash equivalents decreased by R75,3 million or 40,1% for the 12-month period since June 2016. The increase in the regulatory balances has resulted in lower cash and cash equivalent holdings required. Accounts payable increased significantly for the six-month period due to a timing difference on electronic payment processing.

Income from advances and equity finance increased by R33,5 million or 16,4% for the 12-month period since June 2016. After sharing with depositors and accounting for credit impairments the net income from funding income activities increased by R15,7 million or 15,4%. Foreign exchange income together with the income earned from unit trust sales, electronic banking fees and other fee income, contributed to the increase in non-funding income by R6,0 million or 39,1% year-on-year.

Operating expenditure increased by 6,8% or R6,3 million year-on-year, driven mainly by higher employment costs and additional depreciation as a result of new capital projects. After consideration of the above, the net effect is an increase of 47,1% in total comprehensive income for the 12-month period, resulting in basic and diluted earnings per share also increasing by 45,2% for the same period.

2017 has seen the bank make efforts to effectively manage its cost-to-income ratio and embarking on cost-saving initiatives. This has contributed towards the overall net profit growth for the year. The growth in demand for our Shariah-compliant products has resulted in high income earned in 2017, which has been the primary contributor towards our increased profitability for the year.

Additional disclosure requirements in terms of Regulation 43 of the Banks Act may be accessed via the bank’s website, being when published in line with regulations.



Interim Report 30 June 2017

Click here for the Capital Adequacy Report as at 31 December 2017

Click here for the Bi-annual disclosures in terms of Banks’ Act,Regulation 43

Click here for the Capital Adequacy Archive Reports

Click here for the Liquidity Coverage Ratio as at 31 December 2017