SBC LTD DISBURSEMENTS DOWN TO E125 MILLION

MBABANE – Mixed fortunes.

This best sums the Eswatini Stock Exchange-listed SBC Limited and subsidiaries group financial results for the six months period ended June 30,2020.  

In spite of 10 per cent increase in  profit after tax SBC consumer lending business to E26.7 million from  E24.2 million; there was a notable decline in profit before tax. The latter fell from 21.4 per cent to E21.1 million as a result of the carrying costs of the property segment which at this point is achieving fledging rental revenues.  

In a period significantly impacted by lockdowns, which were enforced to curtail the spread of COVID-19, SBC’s disbursements amounted to E125 million for the six month period. They were at E215 million in 2019.

disbursements

In Eswatini, disbursements amounted to E76 million from E127 million.

“The result was that the loan book grew by three per cent over the period and was on average 10 per cent larger than the equivalent to the prior year period,” reported SBC.

Consumer lending revenue have grown by seven per cent to E152 million. The lag against the loan book growth was attributed to an underperformance in the short term loan book in the country.

“Revenue also includes an initial revenue of E1 million on the Malkerns property. This was somewhat short of expectations, but the COVID-19 environment prevented the intended level of activity in this area,” reads the report.

Operating expenses, on the other hand, increased by seven per cent from E54 million to E58 million. 

absorbed

It was in line with the revenue growth and absorbed E0.9 million escalation in property related operating expenses. “Strong cash levels as a result of a significant funding transaction closed early in the period coupled with the COVID-19 environment, where the collection performance maintained, but disbursements declined combined to result in other incomes of E30 million, a 27 per cent increase on the prior year,” reads the report.

Finance costs were recorded at E97 million during the period under review (2019: E7 7million). This was an increase of 25 per cent compared to the prior period and predominantly arose from interest on notes issued under the listed medium term note programme and other promissory notes issued by subsidiary, Select Limited. At least E8 million or 10 per cent of this increase is attributed to the swelling in funding cost of the Malkerns project.

“With the current uncertainty, despite the consistent loan repayments collections in both countries (Eswatini and Lesotho), liquidity risk management remains a key priority for the group,” assured SBC.

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: