Sasfin Holdings has revealed a headline loss of R58.7 million for the fiscal year ending June, following pressures from revenue decline, credit losses, and costs linked to regulatory scrutiny of former clients. The announcement on Tuesday comes as the company faced potential suspension from the JSE for delayed results, which were due at the end of September.
In contrast to last year’s profit of R112.7 million, Sasfin has opted to withhold dividends for 2024. CEO Michael Sassoon cited a “difficult operating environment” and noted the strategic reset launched in March 2023, aimed at streamlining the group’s operations.
The group, currently valued at around R875 million, has endured controversies, including involvement in a global gold smuggling and money laundering case that implicated former employees. Additionally, the Prudential Authority imposed R160.64 million in administrative sanctions for past noncompliance in its foreign exchange business.
Despite these setbacks, Sasfin has managed to strengthen its balance sheet. Operating losses in its business and commercial banking division widened, prompting plans for an exit by the end of 2025. However, its Wealth division showed promise, with operating profit rising over 19% to nearly R140 million.
Sasfin plans to delist from the JSE by December 2024, as it continues to focus on its core rental finance and wealth businesses, aiming to emerge as a more streamlined entity. The company remains committed to delivering value to its stakeholders amid ongoing challenges.