Business / Companies
TN Bank's total bank deposits grew by 62 percent
05 Aug 2011 at 06:48hrs | Views
At the company's AGM held yesterday, Thursday 04 August 2011, all resolutions tabled were passed without amendments.
In a brief trading update, management advised that revenue for the six months to June 2011 is estimated at over $20.0m against an initial forecast of $11.0m. FY 2011 target has been revised to approximately $50.0m.
Total bank deposits grew 62% to $53.0m and management expects deposits of approximately $100.0m by 31 December 2011. At 30 June 2011 loans to corporate had increased 26% to $39.0m and a further 54% growth is anticipated to 31 December 2011.
The consumer book was at $7.0m and should end the year at approximately $12.0m. The bank operates from 22 branches with a further 20 to be opened by end of year. The loan to deposit ratio was at 87% although this is expected to recede to approximately 60%. Provisions to total book were at 5%.
The furniture manufacturing and retailing business recorded sales of approximately $23.0m and finance charges of $5.0m. Gross sales are expected to reach $38.0m for FY 2011. Retail space is approximately 32,000m2 and is likely to end the year at 42,000 m2. Capacity utilisation for case goods improved to 70% from 50% and was at approximately 60% for bedding, up from 40%.
The group recorded significant growth in the period. Nonetheless, the quality of the advances book remains an issue with impairments at 5% of book. In our opinion, there is limited scope for the bank to grow quality advances given the current high loan to deposit ratio of 87%. Furthermore, high wage demands and high utility charges continue to squeeze margins for the manufacturing unit. We believe that TN Holdings is a group still in evolution with the modified in-store banking concept still to be embraced. The scrip is tightly held with average daily volume of less than 150,000 shares.
In a brief trading update, management advised that revenue for the six months to June 2011 is estimated at over $20.0m against an initial forecast of $11.0m. FY 2011 target has been revised to approximately $50.0m.
Total bank deposits grew 62% to $53.0m and management expects deposits of approximately $100.0m by 31 December 2011. At 30 June 2011 loans to corporate had increased 26% to $39.0m and a further 54% growth is anticipated to 31 December 2011.
The furniture manufacturing and retailing business recorded sales of approximately $23.0m and finance charges of $5.0m. Gross sales are expected to reach $38.0m for FY 2011. Retail space is approximately 32,000m2 and is likely to end the year at 42,000 m2. Capacity utilisation for case goods improved to 70% from 50% and was at approximately 60% for bedding, up from 40%.
The group recorded significant growth in the period. Nonetheless, the quality of the advances book remains an issue with impairments at 5% of book. In our opinion, there is limited scope for the bank to grow quality advances given the current high loan to deposit ratio of 87%. Furthermore, high wage demands and high utility charges continue to squeeze margins for the manufacturing unit. We believe that TN Holdings is a group still in evolution with the modified in-store banking concept still to be embraced. The scrip is tightly held with average daily volume of less than 150,000 shares.
Source - TN
