Formulae and definitions

ITEM     DEFINITION
After tax credit loss coverage     Provision coverage divided by after tax credit loss ratio.
Asset turnover ratio     Gross principal book revenue expressed as a percentage of average carrying value of purchased book debts.
Average equity attributable to ordinary equity holders of the parent     Sum of equity attributable to ordinary equity holders of the parent at the end of each month from September to September divided by 13.
Average gross loans and advances     Sum of gross loans and advances at the end of each month from September to September divided by 13.
Average interest-bearing liabilities     Sum of interest-bearing liabilities at the end of each month from September to September divided by 13.
Average assets     Sum of assets at the end of each month from September to September divided by 13.
Average cost of borrowing     Interest expense expressed as a percentage of average interest-bearing liabilities.
Capital adequacy ratio     Total equity plus subordinated debt capital less goodwill expressed as a percentage of total assets less goodwill and cash and cash equivalents.
Core cost-to-income ratio     Core operating costs expressed as a percentage of net interest income plus non-interest revenue.
Core headline earnings     Headline earnings excluding transaction and other acquisition-related costs.
Core headline earnings per share     Core headline earnings divided by weighted average number of ordinary shares in issue.
Core operating costs     Operating costs excluding transaction and other acquisition-related costs.
Core profit for the year     Profit for the year excluding transaction and other acquisition-related costs.
Core return on average assets     Core profit for the year expressed as a percentage of average assets.
Core return on average equity     Core profit for the year attributable to ordinary equity holders of the parent expressed as a percentage of average equity attributable to ordinary equity holders of the parent.
Core return on sales     Core profit for the year expressed as a percentage of total income.
Cost-to-income ratio     Total operating costs expressed as a percentage of net interest income plus non-interest revenue.
Credit loss ratio     Impairment of loans and advances expressed as a percentage of average gross loans  and advances.
EBITDA     Profit before net interest income, tax, depreciation and amortisation of intangible assets (specifically excluding amortisation of purchased book debts) excluding Transaction Capital Business Solutions.
Effective tax rate     Income tax expense expressed as a percentage of profit before tax.
Estimated remaining collections     Estimated undiscounted value of remaining gross cash collections of purchased book debts, estimated to be recovered over the next 120 months or 96 months.
Gearing     Total assets divided by equity attributable to ordinary equity holders of the parent expressed in times.
Gross loans and advances     Gross loans and advances exclude the value of the written-off book brought back on to the balance sheet.
Gross yield on average assets     Total income divided by average assets.
Gross yield on average gross loans and advances     Total income divided by average gross loans and advances.
Headline earnings     Headline earnings is defined and calculated as per the circular titled Headline Earnings as issued by the South African Institute of Chartered Accountants (SAICA) as amended    from time to time, currently being basic earnings attributable to ordinary shareholders adjusted for goodwill impairments, capital profits and losses and other non-headline items.
Headline earnings per share     Headline earnings divided by weighted average number of ordinary shares in issue.
Net asset value per share     Equity attributable to ordinary equity holders of the parent divided by number of ordinary shares in issue.
Net interest margin     Net interest income as a percentage of average gross loans and advances.
Non-performing loan coverage     Impairment provision expressed as a percentage of non-performing loans.
Non-performing loan ratio     Non-performing loans expressed as a percentage of gross loans and advances.
Non-performing loans    

a) The balance outstanding of loans and advances where the applicable obligor is:

  • At least 3.5 monthly instalments in arrears;
  • In respect of which a qualifying payment/s has not been made during the reference period; and where such arrears is due to obligor delinquency.

Qualifying payment: a payment made which is more than 50% of the cumulative instalments due during the reference period.

Reference period: The preceding three month period ending at the reporting date.

      b) The value of repossessed stock on hand that has not yet entered the refurbishment facilities.
Pre-provision profit     Profit before tax excluding impairment of loans and advances.
Provision coverage     Impairment provision expressed as a percentage of gross loans and advances.
Return on average assets     Profit for the year expressed as a percentage of average assets.
Return on average equity     Profit for the year attributable to ordinary equity holders of the parent expressed as a percentage of average equity attributable to ordinary equity holders of the parent.
Return on sales     Profit for the year expressed as a percentage of total income.
Risk-adjusted net interest margin     Net interest margin less credit loss ratio.
Structurally subordinated debt     Senior debt issued by a holding company within the group.
Subordinated debt     Debt subordinated by agreement with the lender plus structurally subordinated debt.
Total income     Interest and other similar income plus non-interest revenue.
Weighted average number of ordinary shares in issue     The number of ordinary shares in issue at the beginning of the year increased by shares issued during the year, weighted on a time basis for the year during which they have participated in the income of the group excluding treasury shares.