African Bank

Very quick blog post in this regard... South Africa's 'other' bank reported its full year results and once again they proved themselves the masters of risk management by keeping it simple and stupid.

By "The Other Bank" I of course refer to African Bank Investments Limited (ABIL - JSE:ABL).

This to me is a great, easy to understand and rewarding business to be involved. In a nutshell, they lend money that typically falls outside the ambit and risk models of the Big 4 banks.

supposedly these are supposed to be riskier clients but you never here the ABL guys yabbing about the tough environment and how difficult the NCA has made their lives or how tough it is to get ther money back.


They're a tough sharp bunch and at present the company is paying a dividend yield of just under 10%. Definately not the worst deal around and something I put in my share portfolio as something of a buy-and-hold investment....

The market liked the results and the share was up strongly about 6%

Just a thought - use it, don't use.