Interim Report

Commentary on the unaudited results for the period ended 30 June 2019

Group position
12-month performance

The bank continued to improve its liquidity position as growth in its deposit-taking activities over the past 12 months increased by R603,4 million, or 11,1% since June 2018.

With the growth in deposits, surplus cash, which is invested in Shariah-compliant equity finance transactions, has increased by R565,4 million, or 63,1%. During this period, the bank’s advances book grew by R158,2 million, or 3,3%.

Six-month performance
The deposit book growth for the 6 months ended 30 June 2019 has also been favourable, with growth of R182,6 million, or 3,1% to the end of June 2019, while advances growth has remained relatively static for the same period.

With the encouraging growth in deposits that took place for the year, these excess funds were then invested in equity finance transactions for the year, which resulted in the signifi cant growth of R371,7 million, or 34,1% in the current year. The additional equity finance transactions were funded by both the increase in deposit-taking activities and a reduction in cash holdings for 2019, which equated to a reduction of R125,4 million, or 42,5% since December 2018.

The bank also continued to manage its capital requirements with the issuance of its local denominated Sukuk, which was fully-subscribed in the fourth quarter of 2018, totalling R200 million. This contributed to an increase of 220,0% in the income paid to Sukuk holders in the period.

Group performance
Income from advances and equity finance increased by R33,6 million, or 13,1% compared against the same period last year. After sharing with depositors and accounting for credit impairments, the net income from funding income activities increased by R16,2 million, or 12,4%.

Foreign exchange income together with the income earned from unit trust sales, electronic banking fees and other fee income, remained relatively unchanged yearon- year, indicating that the increase in income earned is being driven primarily by the increase in funding income.

Operating expenditure increased by R9,4 million, or 8,2% year-on-year, driven mainly by higher employment costs and additional depreciation as a result of new capital projects implemented during the preceding 12 months. After consideration of the above, the net effect is an increase of 18,3% in total comprehensive income in 2019 compared against the same period in 2018. This has resulted in basic and diluted earnings per share also increasing by 18,3% for the same period.


As can be seen from the results, despite the macro and micro-economic challenges facing the country, the bank has managed to increase its year-on-year performance to date. Management is optimistic that this increased performance will carry through to the end of the year.

Additional disclosure requirements in terms of regulation 43 of the Banks Act may be accessed via the bank’s website, being when published in line with regulations.

For and on behalf of the Board
31 July 2019

Click here for the Capital Adequacy Report as at 31 December 2019

Click here Main Features Of Capital Instruments as at 31 December 2019

Click here for the Capital Adequacy Archive Reports

Interim Report 30 June 2019

Click here for the Bi-annual disclosures in terms of Banks’ Act,Regulation 43

Click here for the Liquidity Coverage Ratio as at 31 December 2019

Click here for the Liquidity Coverage Archive Reports

Page last updated: 2020-07-08