ITEM 

DEFINITION 

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 

Sum of equity attributable to ordinary equity holders 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 interestbearing liabilities 

Sum of interestbearing 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 interestbearing 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 costtoincome ratio 

Core operating costs expressed as a percentage of total income. 

Core headline earnings 

Headline earnings excluding onceoff transaction 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 onceoff transaction costs. 

Core profit for the year 

Profit for the year excluding onceoff transaction 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 expressed as a percentage of average equity attributable to ordinary equity holders. 

Core return on sales 

Core profit for the year expressed as a percentage of total income. 

Costtoincome ratio 

Total operating costs expressed as a percentage of total income. 

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. 

Gross loans and advances 

Gross loans and advances exclude the value of the writtenoff book brought back onto the balance sheet. 

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 nonheadline items. 

Headline earnings per share 

Headline earnings divided by weighted average number of ordinary shares in issue. 

Leverage 

Total assets divided by total equity expressed in times. 

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. 

Nonperforming loan coverage 

Impairment provision expressed as a percentage of nonperforming loans. 

Nonperforming loan ratio 

Nonperforming loans expressed as a percentage of gross loans and advances. 

Nonperforming 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 threemonth period ending at the reporting date. 
b) 
The value of repossessed stock on hand that has not yet entered the refurbishment
facilities. 


Preprovision 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 expressed as a percentage of average equity attributable to ordinary equity holders. 

Return on sales 

Profit for the year expressed as a percentage of total income. 

Riskadjusted 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 

Net interest income plus noninterest revenue. 

Weighted average interest rate at origination 

Interest rate at origination weighted on initial capital advanced for the year. 

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 period during which they have participated in the income of the group, excluding treasury shares. 
