File picture: Philimon Bulawayo
JOHANNESBURG - Listed financial services company Finbond Group surged more than 9percent in early trade on the JSE yesterday after it reported a favourable trading update for the year to end February.

The share price rose to R3.88 a share, up from Friday’s closing price of R3.54 after the group said that it expected its headline earnings per share to increase between 68.8percent and 88.7percent during the period.

Finbond is a leading South African and North American financial services institution, specialising in the design and delivery of unique value and solution based savings, credit and insurance solutions. It operates two divisions: micro credit and investments and credit.

The group said it expected that its headline earnings per share would increase between 31.4cents a share and 35.1c a share - representing an improvement of between 68.8percent and 88.7percent compared to the 18.6c reported last year. It also predicted a healthy increase in its earnings per share for the year.

“Earnings per share will increase to between 29c and 32.7c per share, representing a percentage improvement of between 55.9percent and 75.8percent, compared to the 18.6c per share reported for the prior year,” it said.

Its Micro Credit products were offered to the under-banked and under-served market actively seeking credit solutions, but remaining largely unattended and under-serviced due to the traditional banks’ concentration on the higher income brackets of the population.

It said that its Investment and Savings products offered above-average returns nationally to investors and pensioners.

The group has a large footprint in the country, with 408 offices across all provinces. It listed on the JSE in 2007. It moved to North America in 2016 and currently has 223 offices in the region.

Last year, the group reported a profit after tax of R180.45million, which was a significant increase as compared to the R57.25m reported a year earlier. It said it would announce its results for the year this month.

Finbond shares closed 9.89percent higher on the JSE yesterday at R3.89.

- BUSINESS REPORT