Hlumisa was founded back in 2007 in a bid to provide shareholders and African Bank Investment Limited employees with the ability to acquire a meaningful stake in the bank. Hlumisa Investments Holdings Limited is the BEE subsidiary of African Bank Investment Limited, and is the banks BBBEE partner.The South African based,African Bank Limited is a retail bank that offers financial products and services to residents of South Africa. Licensed by the South African Reserve Bank, African Bank Limited enjoys the status of being a “locally-controlled bank” by the Reserve Bank. It is listed on the Johannesburg Stock Exchange (JSE). African Bank is headquartered in Midrand, South Africa, the bank has a countrywide branch distribution network. On the 4th of April 2016, the new African Bank Limited was launched following an extensive restructuring exercise, which began on 10 August 2014 when the old African Bank Limited was placed in curatorship. African Bank Limited and African Insurance Group Limited form part of a new banking group, with a new holding company, African Bank Holdings Limited.

Hlumisa does not conduct any business if its own, since it is the BBBEE component of African Bank Investment Limited it gleans its value for shareholders through the share price that it enjoys for African Bank. The African Bank Holdings Group strategy is designed to support the mission to be a successful Retail Bank, offering a wide range of products and services to the consumers of South Africa. It is from this, strategy and mission push that Hlumisa Investment Holdings stands to gain value. Through the growth of African Bank Investment Limited share price and shares, Hlumisa shares and share price will also stand to experience such growth, as Hlumisa does not run its own business but its stock rises with the rise of African Bank’s stock. The mission to be a successful retailer required African Bank to revise its long held strategy, especially in the banks most recent history, of delivering monoline unsecured lending products through a branch network. This is a business that, African Bank sees as clearly unsustainable in the longer term.

With this in mind, the Group revised its strategy to diversify its business, while seeking to provide more value than what its customers expect of it. The embodiment of the strategy into a diversified business has resulted in the separation of the Group business into three strategic focus areas.

These three strategic focus areas are:

 Branch Network, which is about providing the traditional African Bank credit and insurance products.

 Credit Direct, which is about providing lending products through direct contact with customers via non-branch channels.
 Digital, this is the channel that will ultimately provide pervasive contact and transactional banking products with customers through a digital ‘omni-channel environment’.

These three businesses are all supported by the “Corporate Centre”, which among other things, ensures appropriate levels of funding, liquidity and capital throughout the Group. The parts of the strategy, underpinned by the three pillars of ‘process and technology’, ‘people’ and ‘governance and compliance’, are designed to deliver products and services to the consumers of South Africa, deliver the successful African Bank and a sustainable return to stakeholders.

ABL also looks to:

 Modernise its branch network. This has the effect of not only positive image generation but is an important driver in motivation for African Bank’s staff as well. African Bank believes that a motivated workforce drives business better, which bodes well for Hlumisa’s share price and stock.

 Up skill and right size network. Up skilling is one important way African Bank stays competitive, this is a key driver of organisational performance.

 Diversify revenue stream. Diversification is a way to ensure African Banks future, and by extension the future of Hlumisa shares and Hlumisa shareholders.

 Introduce paperless system. Introducing a paperless system is another way to improve efficiency, and record keeping.

 Compensate for branch network reduction in business.

 Continue to improve balance sheet. The financial sustainability of African Bank is paramount, this will have the consequential effects of driving or bringing down Hlumisa shares and share price.

African Bank’s return on equity currently stands at 7,5%, an improvement from the previous 6,7 return on equity, is however said to have been diluted by negative returns in direct credit, digital new business and corporate overhang. This would however still result in a rise in dividends. Further risk pull back from consumers and decreasing customer credit appetite has reduced customer numbers by 31 000. This definitely had an impact on the Hlumisa share price and live online charts. This had a negative impact on Hlumisa stock and obvious purchase sentiments on the online data trade charts. African Bank saw retail deposit growth of 42%, which resulted in R204 million from September 2016, these were quite positive news and will have done a lot to sway investor confidence in Hlumisa. This has the potential of keeping investors from not putting up their stock for sale, as the Hlumisa stock looks to rise. African Bank also experienced a seasonal increase in credit loss ratio of 13,2%, this affected its portfolio. Analysts interpret this as understandable given African Bank’s past and the competitive nature of the South African banking landscape, of which African Bank has been out of touch with for a while now. The forecast on African Bank’s future is conservative.

The overall challenging economic environment, coupled with increased risk aversion and consumer indebtedness (leading to decreased consumer credit appetite and affordability) has resulted in decreased new business volumes and a contraction in the personal loans market as measured by the quarterly statistics produced by the National Credit regulator (NCR). The total personal loans market stood at R165 billion as at December 2016, compared to a peak of R173 billion in March 2014. New business volumes have also decreased from the peak of R29 billion during the last quarter of 2012, averaging R20 billion per quarter more recently. African Bank Limited is currently in court proceedings regarding the previous dealings of the company’s board. This is not an encouraging fact, and is one potential buyers of African Bank Limited shares have to be careful and mindful of in assessing whether African Bank Limited’s stock through the Hlumisa scheme, is a move they are willing to make in a stock buy today.

Financials

Diversified Financials

We have made it simple to buy JSE listed firm shares online. The easiest way to buy Hlumisa Investments Holding Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Hlumisa Investments Holding Group and assist you with the setup and management of your stock portfolio account.

1. Start by Filling in the BUY THIS SHARE form.
2. Insert your name, email, telephone number and monthly remuneration.
3. Then, Indicate the amount you are looking to invest in Hlumisa Investments Holding Group.
4. Click the “ INVEST NOW” button
5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)

Buying JSE shares has never been this convenient and easy. #myfirstshare

View more JSE shares for sale – here.