Sasfin, which has been trading under threat of JSE suspension over its delayed annual results, yesterday announced it posted a R58.7m headline loss in its year to end June, reports TimesLIVE.

Sasfin CEO Michael Sassoon said the group's poor results underscored the difficult operating environment, as well as the numerous challenges it had navigated in recent years, which included a ‘strategic reset’ announced in March 2023 aimed at streamlining the group's structure.

The firm, now valued at about R875m on the JSE, has also limped from one controversy to another.

An alleged global gold smuggling and money laundering ring implicated some of its former staff and it was slapped with R160.64m in net administrative sanctions by the Reserve Bank's Prudential Authority for the ‘historic non-compliance’ of its discontinued foreign exchange business.

Sasfin's loss was mainly due to an increase in expected credit losses, negative fair value adjustments in its private equity portfolio, as well as a R55.4m provision raised to cover the administrative sanction imposed by the Prudential Authority.

Sasfin's total credit impairment charges also surged almost 90% to R106.5m.

The group also pencilled in expected credit losses on negotiable securities, which it said ranged from a best-case scenario of R24m to R64m.

It added that the blended expected credit loss on these securities, which include Land Bank bills that are in arrears of 90 days or more, was estimated at R39m.

Sasfin holds R203.5m in bills issued by the Land Bank, which defaulted on its debt in April 2020.

The main bright spot in the group's results was once again Sasfin Wealth, which grew operating profit more than 19% to almost R140m.

Despite trading under the threat of having its listing suspended for the late publication of its financials, Sasfin had indicated in July that it intends delisting from the JSE .

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