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African Bank Financial Report Released

We all know it was bad and we all knew that African Bank had said they needed to raise a lot of money to stay afloat just before the crash in share prices so it must have been pretty bad.  They have now finally released their figures, which where delayed during the beginning of the curatorship (it took a while guys…seriously).

Repeat the word “stable” lots of times in the Report

African Bank Limited has now reported a R9.3 billion loss for the 12 months to September 2014, that is a 58% increase on its restated R5.9 billion loss for the 2013 financial year. African Bank have said that payments of new loans and credit cards have now “stabilised” at lower levels of around R600 million a month from where they used to be at around R1.2 billion a month during late 2014 and early 2014. They were quick to point out that that figure excludes furniture loans on sales of merchandise by Ellerine Furnishers.

Future losses

African Bank says that their collections are now “stable” at over R2 billion a month but they do say they expect to reports a loss for the recent six month period (to March 31 2015) of somewhere between R2.3 billion and R2.8 billion.

ABIL in Business Rescue

Tom Winterboer African Bank curatorAfrican Bank Investment Holdings (Abil), which is African Bank’s parent company, announced recently that they had applied for business rescue after failing to repay loans to a number of banks for banking facilities that had been granted to Ellerine’s. Mr. Winterboer, African Bank curator, say that this in no way impacts on the curatorship of African Bank. He has said:“The Bank continues to operate as before under the control of the Curator and remains open for business,” .

 

Good Bank will have to wait a Good While

Mr Winterboer also said that the creation of Good Bank is now only anticipated for October 2015. Good Bank is the entity that was separated from the rest of African Bank’s non- performing and under-performing assets and loans. African Bank Shareholders who would like to do something with their shares will have to wait for the bank to relist, which will probably take at least two years from when Good Bank is created this year in October. The reason why is simple: they want people to start to trust them and not all go sell off all their shares first chance they get.