Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

African Bank Posts 11-Month Loss After Impairment at Unit

Nov. 1 (Bloomberg) -- African Bank Investments Ltd., South Africa’s largest provider of unsecured loans, posted a loss in the 11 months through August after a 4.6 billion-rand ($458 million) goodwill impairment.

The loss of 4.24 billion rand compares with a profit of 2.82 billion rand a year earlier, the Johannesburg-based lender said in a statement today. Earnings per share excluding one-time items fell 89 percent to 39.6 cents, while income from operations rose 16 percent to 20.1 billion rand.

African Bank, which targets low-income earners with unsecured credit, increased bad-loan provisions as consumers struggle to repay debt and said the impairment relates to its unprofitable Ellerines furniture-retailing business. The bank starts a 5.5 billion-rand rights offer today.

“The banking unit was negatively impacted by slower disbursement and advances growth, as well as deteriorating asset quality with commensurate higher credit impairment charges and credit life insurance claims,” African Bank said.

African Bank’s stock fell as much as 8.5 percent in Johannesburg before closing unchanged at 17 rand. The company will report full-year results on Nov. 11.

To contact the reporter on this story: Renee Bonorchis in Johannesburg at rbonorchis@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.