| Sales |
| Sales analysis – disbursement of new loans |
| |
|
Sales value (R million) |
|
% change |
2007 |
2006 |
| |
yoy |
Total |
Q407 |
Q307 |
Q207 |
Q107 |
Total |
Q406 |
Q306 |
Q206 |
Q106 |
| Retail products |
36 |
5 744 |
1 737 |
1 383 |
1 289 |
1 334 |
4 229 |
1 039 |
987 |
991 |
1 212 |
| Mining products |
(5) |
631 |
165 |
145 |
139 |
181 |
662 |
160 |
166 |
148 |
187 |
| Credit card |
>100 |
419 |
91 |
112 |
100 |
117 |
89 |
28 |
28 |
33 |
0 |
| Payroll products |
8 |
168 |
47 |
37 |
41 |
44 |
155 |
42 |
36 |
37 |
40 |
| Standard Bank JV |
(50) |
157 |
0 |
32 |
54 |
70 |
316 |
68 |
77 |
79 |
92 |
| Total |
31 |
7 118 |
2 040 |
1 709 |
1 623 |
1 746 |
5 451 |
1 337 |
1 294 |
1 289 |
1 531 |
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|
Number of loans (000) |
|
% change |
2007 |
2006 |
| |
yoy |
Total |
Q407 |
Q307 |
Q207 |
Q107 |
Total |
Q406 |
Q306 |
Q206 |
Q106 |
| Retail products |
16 |
922 |
257 |
221 |
216 |
228 |
791 |
195 |
184 |
188 |
224 |
| Mining products |
(30) |
173 |
37 |
40 |
42 |
54 |
247 |
55 |
60 |
58 |
74 |
| Credit card |
>100 |
137 |
30 |
31 |
34 |
42 |
20 |
8 |
5 |
6 |
0 |
| Payroll products |
(14) |
16 |
4 |
3 |
4 |
5 |
18 |
4 |
4 |
5 |
5 |
| Standard Bank JV |
(48) |
42 |
0 |
9 |
15 |
19 |
81 |
18 |
20 |
20 |
23 |
| Total |
11 |
1 289 |
328 |
304 |
310 |
348 |
1 157 |
280 |
274 |
277 |
326 |
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Average loan size (Rand) |
|
% change |
2007 |
2006 |
| |
yoy |
Total |
Q407 |
Q307 |
Q207 |
Q107 |
Total |
Q406 |
Q306 |
Q206 |
Q106 |
| Retail products |
17 |
6 233 |
6 763 |
6 251 |
5 982 |
5 854 |
5 344 |
5 328 |
5 354 |
5 271 |
5 411 |
| Mining products |
36 |
3 644 |
4 482 |
3 644 |
3 318 |
3 327 |
2 682 |
2 938 |
2 762 |
2 554 |
2 527 |
| Credit card |
(31) |
3 066 |
3 020 |
3 639 |
2 972 |
2 758 |
4 462 |
3 482 |
5 145 |
5 125 |
0 |
| Payroll products |
26 |
10 788 |
12 250 |
11 020 |
10 515 |
9 631 |
8 554 |
9 370 |
9 020 |
7 478 |
8 522 |
| Standard Bank JV |
(4) |
3 719 |
0 |
3 676 |
3 693 |
3 760 |
3 892 |
3 812 |
3 844 |
3 952 |
3 941 |
| Total |
17 |
5 522 |
6 226 |
5 624 |
5 243 |
5 018 |
4 710 |
4 777 |
4 723 |
4 645 |
4 695 |
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| Note |
| Actual prior year sales for Commercial Vehicle Finance to the value of R61 million (generated between October 2005 and February 2006) have been excluded from the comparative (FY 2006) numbers, as the company was disposed of in March 2006. |
| |
| Sales of new loans |
 |
| |
Sales of new loans increased by 31% to R7,1 billion (2006:
R5,5 billion) for the 12 months to
30 September 2007.
The growth in sales was largely achieved as a result of the
further price reduction and term extension strategies
implemented in October 2006 and June 2007, an increased
distribution footprint, and the rollout of the credit card. In
addition, the group benefited during the 4th quarter from the
introduction of the NCA, both in terms of opportunities and
a more competitive positioning by the group relative to other
credit providers. Given the nature of the current credit cycle,
the sales growth has however been weighted towards the
medium and low risk groups as reflected in the graph below. |
| |
| Debit order sales by risk grouping |
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| |
The average loan size has increased by 17% from R4 710 to
R5 522 as decreased instalments have allowed customers
to borrow more within their affordability criteria. The average
term of the loans advanced has increased from 21 months
for the 2006 financial year to 29 months for the 2007
financial year.
The ability to offer loans above R10 000 and beyond
36 months to a wider range of customers after the NCA was
introduced, combined with further price cuts introduced in
June 2007, resulted in a significant lift in sales during the 4th
quarter of 2007, which was up 53% on the equivalent
period in 2006. The lifting of this artificial barrier has allowed
for a more normal distribution of the loans by size and term,
as reflected in the
graphs below. |
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| Sales volume per term |
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| Loan size per term |
 |
| |
Credit card sales (as defined by facility limits on new cards
issued) were R419 million for the 12 months. ABIL now has
157 000 cards in issue, with a gross advances book of
R466 million. The average limit on the cards is R3 300 and
the average utilisation is currently 93%. The card is
predominantly targeted at clients who do not have any
existing credit cards and as such only 22% of credit card
clients had a card with another institution at the time of the
client being issued with an African Bank card. Currently
80% of cards issued are to existing clients of the bank.
The joint venture with Standard Bank was terminated with
effect from 31 May 2007. No new loans are being written
under the JV and the remaining book is being wound down.
Tighter underwriting criteria in the Miners Credit division
resulted in higher decline rates being experienced.
New store development remains one of the drivers of new
sales growth and is key to our strategy to make our loan
services more accessible. The group opened forty new
branches during 2007. Sales performances for these
branches are well on target. Sixty branches have also been
refurbished and forty nine were relocated, merged or closed
during the year.
ABIL currently has 1,5 million active clients, up 20% from
September 2006. The group acquired 325 000 new clients
during the current year, and lost 85 000 clients to dormancy
and write-offs, resulting in a net increase of 240 000 clients.
While progress has been made in growing the client base
this remains a high strategic priority, with more work
required to ensure that we attract new clients and reduce
the loss of clients through dormancy and delinquency. |
