THE "bad bank" cut from African Bank Investments Limited (Abil) narrowed its interim loss to R646m for the six months to end-March from R2.8bn in the matching period, it reported on Thursday.
The "bad bank" portion of Abil has been renamed Residual Debt Services Limited (RDSL) to differentiate it from the relaunched "good bank" which trades as African Bank and the suspended JSE-share Abil that has been left with Standard & General Insurance Company.
"These results mark the conclusion of the successful restructuring and relaunch of the new African Bank," RDSL curator Tom Winterboer said in the results statement.
The R646m loss was far lower than the forecast R2.1bn loss published in February’s offer information memorandum.
Winterboer said this was due to better-than-forecast impairments, exchange rates, restructuring costs and inter-group debt repayments.
RDSL’s interest income fell 32% to R3.4bn and its fee income 37% to R822m.
"Collections have stabilised at lower levels at an average of R1.8bn per month on a reduced portfolio book which resulted in improved credit quality migration. Early-stage collections have also improved month on month again demonstrating improved credit quality.
"Collections on the residual book have trended above the forecast projections, reducing on a monthly basis as expected," Winterboer said.
Performance was, however, tempered due to the current macroeconomic pressures, including inflation, lower credit appetite, increased retrenchments and further credit tightening measures, the results statement said.
Picture: MICHAEL ETTERSHANK
THE "bad bank" cut from African Bank Investments Limited (Abil) narrowed its interim loss to R646m for the six months to end-March from R2.8bn in the matching period, it reported on Thursday.
The "bad bank" portion of Abil has been renamed Residual Debt Services Limited (RDSL) to differentiate it from the relaunched "good bank" which trades as African Bank and the suspended JSE-share Abil that has been left with Standard & General Insurance Company.
"These results mark the conclusion of the successful restructuring and relaunch of the new African Bank," RDSL curator Tom Winterboer said in the results statement.
The R646m loss was far lower than the forecast R2.1bn loss published in February’s offer information memorandum.
Winterboer said this was due to better-than-forecast impairments, exchange rates, restructuring costs and inter-group debt repayments.
RDSL’s interest income fell 32% to R3.4bn and its fee income 37% to R822m.
"Collections have stabilised at lower levels at an average of R1.8bn per month on a reduced portfolio book which resulted in improved credit quality migration. Early-stage collections have also improved month on month again demonstrating improved credit quality.
"Collections on the residual book have trended above the forecast projections, reducing on a monthly basis as expected," Winterboer said.
Performance was, however, tempered due to the current macroeconomic pressures, including inflation, lower credit appetite, increased retrenchments and further credit tightening measures, the results statement said.
