Sasfin FY HEPS down 19.4 %

Sasfin Holdings, a diversified financial services group, recently released its financial results, revealing a significant drop in headline earnings per share (HEPS) by 19.4%. The company attributed this decline to various factors, including increased costs and challenges within its forex trading division. CEO Michael Sassoon joined CNBC Africa to shed light on the issues faced by the company and the strategic steps taken to address them. Sassoon emphasized the company's shift towards building a more diversified business banking sector alongside its strong wealth and asset finance areas. While these core businesses continue to generate healthy profits, the business and commercial banking unit experienced a strategic reset earlier in the year. This reset involved exiting two large books, capital equipment finance, and commercial property finance, in a deal with African Bank to refocus on core operations. Addressing the challenges in the forex trading division, Sassoon discussed allegations of collusion among staff members with clients to circumvent money laundering and exchange control controls. Following a thorough investigation, the company terminated the contracts of several individuals involved and took legal action where necessary. Despite the costs incurred, Sasfin Holdings is confident in the steps taken to prevent such incidents in the future. When questioned about the number of staff members fired due to the collusion allegations, Sassoon revealed that approximately five to six individuals had their contracts terminated, out of a total of 10 to 11 implicated employees. He acknowledged the difficulty in detecting sophisticated collusion across different parts of the business but expressed confidence in the measures put in place to prevent recurrence. Looking ahead, Sassoon outlined the company's strategic focus on core offerings such as the wealth business and rental finance, while scaling back on capital-intensive operations. The decision to exit a substantial portion of loans in commercial property finance and capital equipment finance signifies a shift towards providing specialized solutions to clients in a more targeted manner. Despite the challenges faced during the reporting period, Sassoon remains optimistic about the future. The company has already taken steps to address non-core activities, announced significant deals, and conducted thorough investigations to ensure compliance and integrity. By refocusing on core activities and delivering tailored solutions to clients, Sasfin Holdings aims to enhance returns for its stakeholders. As Sasfin Holdings navigates the road ahead, CEO Michael Sassoon remains committed to driving the company forward amidst a challenging business environment. With a strategic reset in place and a renewed focus on core operations, the company is positioned to weather the storm and emerge stronger in the coming year.