Wrap Text
Unaudited consolidated interim results for the six months ended 31 August 2026
FINBOND GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2001/015761/06)
Share code: "FGL" ISIN: ZAE000138095
Main Board – General Segment
(“Finbond” or “the Company” or “the Group")
UNAUDITED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2026
HIGHLIGHTS
The Group continued to grow its core lending business during the period, with loans and advances
increasing 14.5%. Interest costs were held flat despite this growth, net cash outflow from operating
activities improved by more than half and cash distributions from joint ventures and associate increased
9.0%.
While the period under review saw a decline in headline earnings due to macroeconomic headwinds, we
delivered on various core medium- and long-term strategic objectives in growing our loan book, increasing
customer numbers, diversifying earnings, expanding our long-term funding base and enhancing our risk
management framework, while generating good cashflow from core operations.
As described in more detail in the full announcement that can be accessed via the link below, a difficult
South African credit environment, in which consumer credit risk increased and credit loss ratios rose at
the major banks had an adverse impact on basic and headline earnings. The higher credit risk directly
affected the Group’s South African subsidiaries: Finbond Mutual Bank recorded higher impairments,
which weighed on its results, while Supreme Finance and King Loan Finance were especially conservative
in granting loans, which led to slower growth of loan volumes.
The timing of the Group’s expansion of more than 140 branches in South Africa over the past three years
amplified this impact. Newer branches attract a higher share of new customers, who carry higher credit
risk, and this led to higher impairments. The difficult environment also slowed the further growth of new
branches, particularly at Supreme Finance and King Loan Finance, extending their lead time to
profitability.
Highlights for the six months under review:
• Total cash granted to customers totaled R3.28 billion, while total cash receipts from customers
totaled R4.21 billion.
• Net loans and advances (net of impairment provisions) increased 14.5% to R762.7 million (August
2025: R666.1 million).
• Interest, fee and other operating income increased 1.7% to R742.6 million (August 2025: R730.3
million).
• Net interest income increased 1.7% to R211.2 million (August 2025: R207.6 million), while interest
expense decreased 0.2% to R199.6 million despite the growth in the loan book.
• Total comprehensive income improved 251.9% to R30.3 million (August 2025: loss of R19.9
million).
• Net cash utilised in operating activities improved 51.4% to R34.7 million (August 2025: R71.3
million).
• For every rand of consumer capital granted during the period, the Group received an average of
128.3% back in cash (August 2025: 126.4%).
• Cash distributions received from joint ventures and associates increased 9.0% to R131.2 million
(August 2025: R120.3 million).
• Gross business and specialised finance loans increased 14.6% to R221.7 million (August 2025:
R193.5 million), with performing (Stage 1) loans up 70.9%.
• The Group remained profitable on a basic earnings basis, with basic earnings per share of 1.7 cents
(August 2025: 11.0 cents).
• Headline earnings exclude these once-off, non-cash remeasurement items, and on that basis the
Group reported a headline loss per share of 5.9 cents (August 2025: headline earnings per share
of 1.1 cents).
SHORT-FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the directors and is only a summary of the
information contained in the unaudited consolidated interim results for the six months ended 31 August
2026 (“Interims”) and accordingly does not contain full or complete details.
The Interims are available on the JSE cloudlink at
https://senspdf.jse.co.za/documents/2026/JSE/ISSE/FGL/FGLHY27.pdf and on the Company’s website at
https://finbondgroup.com/announcements.html.
Any investment decision by shareholders and/or investors should be based on consideration of the
information in the Interims available on the JSE cloudlink or the Company’s website.
FINANCIAL SUMMARY
Six months Six months %
ended ended Change
31 August 31 August
2026 2025
Revenue (R'000) 878 279 909 390 (3.4)
Basic earnings/(loss) per share 1.7 11.0 (84.9)
(cents)
Diluted earnings/(loss) per 1.7 11.0 (84.9)
share (cents)
Headline earnings/(loss) per (5.9) 1.1 (>100)
share (cents)
Diluted headline (5.9) 1.1 (>100)
earnings/(loss) per share
(cents)
Dividend per share (cents) - 5.5 (>100)
The Board has resolved not to declare an interim dividend for the six months ended 31 August 2026.
By order of the board
DR MALESELA MOTLATLA DR WILLEM VAN AARDT
Chairman Chief Executive Officer
Pretoria
23 October 2026
Directors: Chairman: Dr MDC Motlatla* (BA, DCom (Unisa)); Chief Executive Officer: Dr W van Aardt
(BProc (Cum Laude), LLM (UP), LLD (PU CHE) Admitted Attorney of The High Court of South Africa, QLTT
(England and Wales), Solicitor of the Supreme Court of England and Wales); Chief Financial Officer: GW
Labuschagne (CPA (CA), BCom (Hons Acc), BCom (Fin Acc) (Cum Laude)); HJ Wilken-Jonker* (BCom Hons
(Unisa), MConSci (UP)); PA Naudé*(BCom (Marketing), Gaining Competitive Advantage (Michigan), IEP
(INSEAD)); Adv. N Melville* (BLaw, LLB (Natal) LLM(Cum Laude) (Natal), SEP (Harvard)); DC Pentz* (B Com
(Hons)), (Chartered Accountant (SA), AEP (Unisa)); SM Riskowitz* (BCom (Wits))
*Non-executive
Secretary: B Bredenkamp (BCom Accounting, LLB, MBA)
Transfer secretaries: JSE Investor Services (Proprietary) Limited (Registration number 2000/007239/07),
One Exchange Square, 2 Gwen Lane, Sandown, Sandton, 2196
Sponsor: Valeo Capital
Date: 23/10/2026 05:42:00
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