Sasfin Holdings said that it plans to leave the banking business by the end of next year.
The embattled lender and wealth manager noted this decision in its annual results earlier this week.
Sasfin noted that it had a R58 million headline loss in its year ending June. The company’s headline earnings per share plummeted 190% to a loss per share of 152.15 cents for the year to June 30.
The financial institution has been burdened by regulatory sanctions amounting to hundreds of millions of rands.
As a result, Sasfin has been in the process of restructuring its business and is looking to now exit non-core business activities.
The company also said that it plans to de-list from the Johannesburg Stock Exchange (JSE) by the end of 2024.
So what does this mean? Sasfin’s exit from banking leaves it just with the asset management business, Sasfin Wealth and its rental finance business.
Criminal activity
Leadership within Sasfin said that it deeply regretted the fraudulent activity and the financial impact it has had on the company.
“Sasfin, its board and management deeply regret that this fraudulent activity took place in our organisation,” it said.
“We are acutely aware of the devastating impact of financial crime in South Africa, of which Sasfin has also been a direct victim.”
Last year, Sasfin Bank has received R164.64 million of administrative sanctions from the Prudential Authority of the SA Reserve Bank (SARB) on foreign exchange-related non-compliance issues.
Additionally, the South African Revenue Service (Sars) in August 2024 slapped Sasfin Holdings with nearly R4.9 billion in damages for allegations related to money laundering and bribery by former employees and clients of its banking business.
“Since discovering this syndicate, Sasfin took significant steps, which included laying criminal charges against the implicated employees, responsibly exiting the forex business at a considerable cost, and taking steps to further strengthen its compliance and control environments,” it noted.
The company now said that it continues to actively and transparently engage with the regulators.
IOL BUSINESS has reached out to Sasfin in order to asses the impact of these losses on the company’s employees and possible job losses.
IOL BUSINESS