Sasfin swings to full-year loss

Sasfin Holdings, a South African financial services group, has recently released its financial results for the year ended 30 June, revealing a headline loss of R58.68 million in 2024. This stark contrast to the profit of R112.68 million in 2023 has raised concerns among investors and stakeholders. The company's headline earnings per share plummeted from 366.18 cents to a loss of 190.96 cents per share, signaling a challenging year for the group. These results have come amidst discussions of a proposed delisting that may reshape the future trajectory of Sasfin. In an exclusive interview with CNBC Africa, Sasfin CEO, Michael Sassoon, shed light on the performance, challenges, and future prospects of the company. Sasfin's financial performance has been heavily impacted by provisions raised in response to administrative sanctions from the Reserve Bank. The provisions, mentioned by Sassoon, are estimated based on the company's anticipation of the final costs following regulatory and legal procedures. Amid ongoing legal processes, including a SARS summons, Sasfin continues to navigate these challenges and defend its position rigorously. Looking towards the future, Sasfin is progressing with its proposed delisting, offering shareholders the opportunity to vote and decide on the company's next steps. With the majority of shareholders expressing interest in remaining invested in the company, the delisting process is expected to conclude in the coming months. Additionally, Sasfin's strategic reset includes exiting non-core activities to focus on core businesses such as wealth management and rental finance. Sassoon emphasized that the strategic priorities for the short to medium term include finalizing the disposal of non-core activities, completing the delisting process, and enhancing the performance of key business segments. The company aims to streamline its operations, minimize one-off costs, and generate sustainable returns for its shareholders. Despite facing challenges and significant costs in the past year, Sasfin remains optimistic about its future prospects and is committed to delivering value to its stakeholders. As the company navigates through a challenging period and executes its strategic initiatives, investors and industry analysts will closely monitor Sasfin's progress. The financial services sector in South Africa continues to witness changes and challenges, and Sasfin's ability to adapt and thrive in these conditions will shape its journey ahead. In conclusion, Sasfin Holdings' journey of transformation and resilience reflects the broader landscape of the financial services industry in South Africa. The company's efforts to restructure, refocus on core businesses, and address regulatory challenges underscore its commitment to long-term sustainability and growth.