African Bank Limited 62TL Voluntary Trading Statement

  African Bank Limited (62TL) - Voluntary Trading Statement

RNS Number : 9761P
African Bank Limited
31 October 2012


(Incorporated in the Republic of South Africa)

(Registered bank controlling company)

(Registration number 1946/021193/06)

Ordinary share code: ABL ISIN: ZAE000030060

Preference share code: ABLP ISIN: ZAE000065215

("ABIL" or "the group")

(Incorporated in the Republic of South Africa)
(Registered bank)
(Registration number 1975/002526/06)
Company code: BIABL
("African Bank")


Trading statement

Shareholders are  advised that  both headline  earnings and  earnings for  the 
period are expected to increase by between 17% and 19% relative to the R2  339 
million reported for the 2011 financial year. Similarly, headline earnings per
share and earnings per share are expected  to increase by between 17% and  19% 
relative to the 291,0 cents per share reported for the 2011 financial year.

ABIL benefited  from  strong  credit  sales  and  advances  growththrough  its 
expanded distribution and innovative products and a slower reduction in  yield 
than in  recent  years.Cost growth,  while  higher than  in  previous  years, 
remains well below revenue growth,  resulting in positive operating  leverage. 
The credit loss  ratiowas marginally up  from that published  in the  interim 

The Retail unit  (EHL)experienced sluggish  sales as the  economy slowed  and 
consumers came under increasing pressure. However, its improving  efficiencies 
and solid  margins  helpedmaintain  the positive  momentum  achieved  through 
operating leveragein the first half of the year.

The  group  is  comfortable  that  risk  remains  well  controlled,  from  the 
perspective of  the economic  environment, recent  legislative and  regulatory 
developments, as well  as credit  quality. It is  pleasing to  note that  the 
combination of regulatory scrutiny and heightened awareness by key players  in 
the market have begun to curb excess  supply of credit and that a slowdown  of 
credit extension is evident in the most recent bureau information. ABIL's  own 
underwriting interventions during the year  have been successful in  achieving 
the group's  targeted  risk  adjusted  returns and  in  further  limiting  its 
exposure to emerging risk in the market.

ABIL continues  to  be  actively  engaged  in  discussions  with  the  various 
regulatory and  industry bodies  about a  range of  issues to  strengthen  the 
sustainability  of  the   credit  industry.   We  welcome   this  debate   and 
wholeheartedly support initiatives  that seek  to protect  the consumer  while 
enabling responsible access to credit. The National Credit Regulator has  been 
conducting reviews  of  the underwriting  processes  and practices  of  credit 
providers. ABIL is satisfied that its  policies and procedures are robust  and 
are fully compliant with the requirements of the National Credit Act.

The forecast financial information, on which this trading statement is  based, 
has not been reviewed nor audited and reported on by ABIL's external auditors.

The full year results for the year ended 30 September 2012 are expected to  be 
released on SENS and RNS on or about Monday, 19 November 2012.


ABIL will  hold a  conference call  for interested  parties on  Wednesday,  31 
October 2012 at 16:30 (SA time). 

Conference call details

Access numbers for participants dialling from their country:
Live call                 48 hour playback Code 2134#

South Africa & Other      South Africa & Other
Toll 011 535 3600         011 305 2030

USA                       USA

Toll-free 1 800 860 2442  1 412 317 0088

UK                        UK

Toll-free 0 800 917 7042  0 808 234 6771

Queries: Investor Relations: Lydia du Plessis on 27 11 564 6991 or

Media Relations: Louise Brugman on 27 83504 1186


31 October 2012


RAND MERCHANT BANK (A division of FirstRand Bank Limited)

                     This information is provided by RNS
           The company news service from the London Stock Exchange


TSTFMMFGZMFGZZM -0- Oct/31/2012 12:36 GMT
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