The local subsidiary generated 52% of net income and accounted for 44% of gross loans and advances during the past six months - so, it accounts for about half of the business. Attributable NAV for the group net of goodwill (according to these reviewed results), comes to R227m or 38.8cps - so, BFS is solvent if illiquid for now. The African operations are growing with much lower impairment ratios, but lack scale. Additional funding is therefore crucial. I doubt that AIG, the IFC and ABSA would let BFS go bust as the infrastructure to trade in various countries across the continent have been established, but some reconfiguration of the business model and strategy is probably needed as are management changes.That said, I would not invest. Stanlib however did, big time.
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