Abil claims to have a recovery plan

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Leon  Kirkinis1 Independent Newspapers. African Bank chief executive Leon Kirkinis. Photo: Simphiwe Mbokazi.

Johannesburg - The head of African Bank has a recovery plan following recently-announced multi-billion rand losses, Sunday's Business Times reported.

“We are under no illusion about how tough it is going to be. What is required is equal measures of resilience and courage,” Leon Kirkinis told the newspaper.

Last Friday, African Bank Investments (Abil) revealed it was expecting a basic loss of R4.3 billion to R4.5bn for the six months to March.

The share price subsequently fell about 23 percent.

The Business Times reported that five months ago the bank had raised R5.5bn in a rights issue to help fund its recovery.

However, Kirkinis told the newspaper a turnaround would soon be seen.

“We will start to see signs of change in the first half of 2014 and then in 2015.”

According to analysts, the bank was badly affected by its customers not being able to repay their loans, which were extended due to lax lending criteria. - Sapa

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