Bayport Securitisation (RF) Ltd Delivers Strong Financial Performance Amid Market Challenges

  • Positive performance ratios and efficient cost management practices.
  • Slight decline in return on assets, but healthy gearing ratio and interest margin maintained.
  • Strong asset quality with provision coverage ratio and non-performing loans ratio indicating stability.

Bayport Securitisation (RF) Ltd has published its investor report for the period ended May 2023, revealing stable financial statistics and robust asset quality. The report, prepared in accordance with International Financial Reporting Standards (IFRS) 9, provides valuable insights into the company’s performance and key ratios.

According to the report, Bayport Securitisation demonstrated positive performance ratios, with total income as a percentage of average gross loans and advances standing at 19.0% (including dividends). Dividend income contributed 1.7% to the average gross loans and advances during the same period. The direct and indirect expenses to total income ratio remained at 30.7% (excluding dividends), indicating efficient cost management practices.

However, the company reported a slight decline in return on assets, which stood at (0.2%) for the period. This decline can be attributed to various factors impacting the financial industry. Despite this, Bayport Securitisation has managed to maintain a healthy gearing ratio of 2.7 times and an interest margin of 8.7%.

The income statement extract provided in the report reveals that the interest income for May 2023 reached R73,035,000, while non-interest revenue (excluding dividends) amounted to R2,521,000. Dividend income contributed R8,045,000 to the company’s total income, which reached R72,971,000 for the period. Interest expenses amounted to R34,695,000, and direct and indirect expenses reached R22,621,000, demonstrating prudent financial management.

The report also shed light on Bayport Securitisation’s asset and credit quality ratios. The gross loans and advances for May 2023 were reported at R4,506,238,000, with non-performing loans accounting for R1,438,463,000. The provision coverage ratio stood at a healthy 40.3%, providing a cushion against potential credit losses. Moreover, the non-performing loans ratio was reported at 31.9%, indicating a relatively stable asset quality.

Regarding funding and cash reserves, Bayport Securitisation showcased a strong position with interest-bearing liabilities amounting to R3,192,393,000 and cash and cash equivalents totaling R493,691,000.

The investor report also provided insight into origination and loan claims purchased. Disbursements for May 2023 increased by 41.4%, reaching R100,113,000, while the number of new loans increased by 32.2% to 1,963. Bayport Securitisation also experienced a significant growth in loan claims purchased, with an increase of 289.3% to R28,635,000.

Furthermore, the report highlighted the distribution of loans and advances by geographic location, with Gauteng being the largest contributor, accounting for 50% of the total loans.

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