Trustco results show solid performance in all of the group’s operating segments

Posted: June 28, 2016
Quinton van Rooyen, Group Managing Director

Quinton van Rooyen,
Group Managing Director

 JOHANNESBURG – 28 June 2016: Trustco Group Holdings Limited (Trustco) has announced its results for the year ended 31 March 2016. The results show yet another year of excellent financial performance and business growth.

Quinton van Rooyen, Group Managing Director says people of Namibia remain committed to their principles as enshrined in its Constitution, so too he remains committed to Trustco and its continuous growth. “Whilst the road behind was rocky and the path we now travel is smooth and even, I am poignantly aware that we should never be satisfied with the status quo. Together we’ve laid the groundwork for truly exceptional growth and I intend to turn that possibility into a reality. We’ll make that journey together”

Ryan McDougall, Financial Director of Trustco says earnings, revenue, total assets and net asset value grew in line with management expectations, underpinned by a solid performance in all of the group’s operating segments. “The group’s core financial services operations remain robust in the face of fierce competition and various negative economic influences.”

Revenues grew substantially from previous years due predominantly to a surge in revenue from investments. Whilst steady growth has been achieved in insurance premiums, interest income and other financial services related income the rapid growth continues to arise from property related activities

Earnings per share achieved a result of 55 cents (2015: 44 cents), representing a 27% growth from the prior year. Net profit after tax rose 38% to R420 million which represented a growth in all areas of the business, albeit being substantially bolstered by another exceptional year in the property portfolio

The growth in the Net Asset Value of the group remains a function of organic growth in the main business areas. During the 2016 financial year growth in PPE, advances, investment properties and other receivables dominated the increases in the balance sheet and consistent with earnings, are largely attributable to investment activities. The banking and finance sector experienced an excellent growth of 47% in advances compared to the previous years’ growth of 15%.

The Trustco Board declared a final dividend of 5 cents per ordinary share (2015: 4 cents), which, when added to the interim dividend of 3.4 cents (2015: 3 cents), resulted in an annual dividend of 8.4 cents per ordinary share (2015: 7 cents)

Trustco Bank Namibia Limited, one of only eight licensed commercial banks in Namibia, has opened three points of representation in Namibia and rolled out deposit and lending products during the year. The products focus on SME and mortgage lending, two of the fastest growing sectors of the Namibian lending environment and the two areas which government’s progressive growth plans target with a view to social upliftment.

The HUSO transaction, as announced to shareholders in November 2015, is not yet fully completed as the diamond mine awaits final government go-ahead. Meanwhile, extraction continues on the mine, whilst the cutting and polishing factory to be acquired as part of the transaction is fully operational. In May 2016, Trustco announced an update to the transaction noting that Huso had entered into an agreement to acquire an interest in a diamond mining concession in Sierra Leone.

Trustco was awarded various accolades for financial, social and governance matters. These included:

  • 1st place in Deloitte’s Best Company To Work For Survey 2015 (Namibia large size company category)
  • 2nd place in Sunday Times/Johnnie Walker JSE Top 100
  • Diamond arrow award from PMR Africa for most innovative business

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Email: jacques@mortimer-harvey.co.za