Finbond Group said on Friday headline earnings per share (Heps) will decrease to a loss of between 7.6 cents and 8.8 cents a share for the six months to August 31, representing a decline of between 25.9% and 45.9% compared to the loss of 6 cents per share in the same six-month period a year before.
Earnings per share will decrease to a loss of between 10.2 cents and 11.5 cents per share, representing a decline of between 63.4% and 83.4% compared to the loss of 6.3 cents per share, the company said in a trading statement on Friday.
Cash payments received of R4.13 billion were 48.9% ahead of the same time last year, while loans advanced increased by 67.4% to R3.36bn.
The recovery and growth initiatives to improve loan sales affected by Covid and regulatory changes in the state of Illinois were showing good progress.
Finbond and its subsidiaries remained cautious in credit granting despite significant available capital.
Sail secured $50 million (R854 million) in external funding, with potential access to a further $50m (R854m), to support the significant growth of the new 36% rate cap business in Illinois.
Sales volumes increased in both South Africa and North America and were significantly ahead of the corresponding period, as well as pre-Covid.
However, US consumer stimulus continues to delay the Covid recovery in the traditional US business.
In South Africa, Finbond Mutual Bank and Supreme Finance exceeded their base pre-Covid 2020 comparative year and were well ahead of budget.
BUSINESS REPORT