Finbond Group Limited Reports 22.8% Revenue Surge

Finbond Group Limited has released its audited consolidated results for the fiscal year ended 29 February 2024. The South African financial services provider demonstrated significant growth across multiple financial metrics, indicating robust operational performance and strategic progress.

Revenue Growth and Loan Portfolio Expansion

Revenue Increase

Finbond’s revenue surged by 22.8% to R1.58 billion, compared to R1.28 billion in the previous year. This notable increase reflects the company’s successful strategies in revenue generation and market expansion.

Growth in Consumer Loans

Gross consumer loans and advances saw a rise of 10.4%, reaching R1.06 billion from R962.0 million. The value of loans advanced increased by 13.5% to R7.02 billion, up from R6.18 billion. Additionally, the number of loans advanced rose by 5.8% to 1.4 million from 1.3 million.

Improvement in Earnings Per Share

Basic Earnings Per Share

Finbond achieved a 100.2% improvement in basic earnings per share, transitioning from a loss of 32.8 cents to a profit of 0.1 cents per share. This positive change underscores the company’s effective cost management and revenue growth.

Headline Earnings Per Share

Headline earnings per share (HEPS) improved by 97.7%, though still reflecting a loss of 0.4 cents per share, compared to a loss of 19.1 cents per share in the previous year. This significant reduction in loss highlights Finbond’s improving financial health.

Table: Financial Highlights

MetricFY2024FY2023*% Change
Revenue (R’000)1,575,3401,283,11422.8
Basic earnings/(loss) per share (cents)0.1(32.8)100.2
Headline (loss)/earnings per share (cents)(0.4)(19.1)97.7
Total assets (R’000)4,280,0004,020,0006.4
Gross consumer loans (R’000)1,060,000962,00010.4
Value of loans advanced (R’000)7,020,0006,180,00013.5
Number of loans advanced1,400,0001,300,0005.8

Asset Growth and Financial Stability

Increase in Total Assets

Finbond’s total assets grew by 6.4% to R4.28 billion, up from R4.02 billion in the previous year. This growth in assets indicates the company’s expanding footprint and increased market confidence.

Unmodified Audit Opinion

BDO South Africa Inc., Finbond’s auditors, expressed an unmodified audit opinion on the Group’s audited financial statements. This opinion reinforces the accuracy and reliability of Finbond’s financial reporting.

Strategic Decisions and Future Outlook

Dividend Policy

Despite the positive financial performance, Finbond’s board decided not to declare a dividend for the financial year ended 29 February 2024. This decision considers the company’s ongoing recovery from COVID-19 and the impact of Illinois regulatory changes in 2021.

Growth Prospects

With a focus on planned growth and strategic investments, Finbond aims to further strengthen its market position. The company’s robust financial health and strategic initiatives position it well for future expansion.

Conclusion

Finbond Group Limited’s financial results for FY2024 demonstrate significant progress in revenue growth, loan portfolio expansion, and earnings improvement. The company’s strategic decisions and effective management practices have resulted in a stronger financial position. With continued focus on growth and market expansion, Finbond is well-positioned to achieve further success in the coming years. Shareholders and investors are encouraged to review the full audited financial statements for a comprehensive understanding of Finbond’s financial performance and strategic direction.