african bank investments-adr (AFRVY) Snapshot

African Bank Investments Ltd. announced that ordinary shareholders are advised that the board of directors has declared an interim gross cash dividend of 25 cents per ordinary share (ZAR 21,25000 cents net of dividend withholding tax) for the six months to 31 March 2013 (the cash dividend). No secondary tax on companies (STC) credits were applied to this dividend declaration. The dividend has been declared as a cash distribution but with an opportunity for ordinary shareholders to elect capitalisation shares to provide flexibility for shareholders wishing to increase their holding in the company given recent changes to dividend tax in South Africa. Ordinary shareholders will be entitled to elect to receive ordinary shares of 2.5 cents each in the company as capitalisation shares in lieu of the cash dividend (the capitalisation issue), to be determined by the ratio that 25 cents bears to the volume weighted average price of the company's ordinary shares on the exchange operated by the JSE Limited (JSE) during the nine-day trading period ending 30 May 2013. The cash dividend will be paid out of the company's distributable profits while the issue price of the capitalisation shares (which will equal the volume weighted average price of ABIL's ordinary shares traded on the JSE for the 9 day period ending on 30 May 2013) will be settled by the company utilising a portion of the company's share premium reserves of ZAR 9,324 million but the share premium will only be utilised to the extent of the par value of the capitalisation shares (being 2.5 cents each) and the balance of the issue price shall be paid for through the capitalisation of distributable profits. The capitalisation shares will, upon their issue, rank pari passu in all respects with the other ordinary shares then in issue. Dividend payment date is on June 18, 2013.

African Bank Investments Ltd. reported unaudited group earnings results for the six months ended March 31, 2013. For the period, the company reported head line earnings of ZAR 1,015 million compared to ZAR 1,370 million a year ago. Headline earnings per share were 125.7 cents compared to 170.4 cents per share a year ago. Return on equity was 13.9% compared to 20.3% a year ago. Return on average tangible equity was 23.9% compared to 37.5% a year ago. Profit from operations was ZAR 1,476 million against ZAR 2,043 million a year ago. Profit before tax was ZAR 1,476 million against ZAR 2,043 million a year ago. Cash generated from operations was ZAR 5,703 million against ZAR 4,860 million a year ago. Cash outflow from operations was ZAR 4,659 million against ZAR 4,610 million a year ago. Acquisition of property and plant was ZAR 185 million against ZAR 227 million a year ago. The lower sales and collections for the first half of the 2013 financial year have put pressure on company's full year results. The group has therefore implemented further revenue enhancing initiatives, whilst reducing risk and has renewed the impetus to tightly manage collections, operating costs and capital expenditure. Trading conditions are expected to remain difficult for the remainder of the year and possibly deteriorate slightly in the retail environment.

African Bank Investments Ltd., H1 2013 Sales/ Trading Statement Call, May 08, 2013