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IOL News
a day ago
- Business
- IOL News
Alexforbes celebrates 90 years with impressive annual results
Alexforbes, a JSE-listed financial services group, said profit for the year from continuing operations improved 28% to R745 million, owing to a significant decrease in non-trading and capital items. Image: File Alexforbes delivered a strong set of results for the year ended March 21, 2025 on the back of a strong investment performance and as the group celebrates its 90th anniversary this year. Profit for the year from continuing operations improved 28% to R745 million, owing to a significant decrease in non-trading and capital items. CEO Dawie de Villiers said, "What excites me about Alexforbes is the way we have punched above our weight for 90 years and the impact we've had on the financial services industry. We have influenced and led real change and continue to do so and most importantly, we secure the financial well-being of members in the retirement funds that we serve. "With the vision of transforming clients' financial journeys, I am proud to share that we are making financial advice available to over 1 million members in our base. Across all ages, income bands and levels of wealth – every single one of our members can now access financial advice from Alexforbes to help them invest, plan and reach their investment destination," he said. The integrated financial services, insurance and investment group said its operating income increased 13% to R4.4 billion owing to strong investment performance underpinned by positive market growth that resulted in higher average assets under management, inflationary increases from within its retirements and healthcare consulting client base and high client retention. Operating income from retirement consulting increased 17% to R1.35bn owing to organic and acquisitive growth, while healthcare consulting reported a 2% increase in operating income to R371 million. Investments reported a 12% increase in operating income to R1.8bn, underpinned by higher average assets under management that benefitted from new institutional inflows, an improvement in retailflows and strong market performance during the year In addition, consolidation of acquisitions completed in previous financial years and higher than expected two-pot claims volumes also contributed to its top line. Alexforbes said it has processed over 480 000 two-pot claims and made gross benefits payments of R7.7bn, with R2.1bn paid to the South African Revenue Services. Total assets under management and administration increased 14% year on year to R599bn, while new institutional business flows for the year amounted to R35bn. Alexforbes said over the past two years, institutional new business levels have hit record highs driven by a significant increase in platform assets due to the platform clients on-boarded from the Sanlam stand-alone retirement fund administration business operations acquisition. Headline earnings per share from total operations increased 15% to 70.8 cents per share. Cash generated from continuing operations remains strong at R1.23bn, up 15% year on year. Alexforbes said, "The group balance sheet remains financially robust,supported by the sustained cash flow generated from continuing operations, with a sound regulatory surpluscapital position of R1 348 million and available cash of R700 million. The group cover ratio of 2.3 times remains above the target solvency cover ratio of 1.2 times." Alexforbes declared a gross final cash dividend of 33 cents per share (up from 30 cents per ordinary share in 2024), which when added to the interim dividend of 22c per share amounts to a total dividend of 55 cents per share for the year. The total annual dividend is up 10% year on year. In addition, the board declared a gross special dividend of 10 cents per share. It said, "Our prospects into the next decade are directly influenced by our vision, which is to transform every client's financial journey - through inclusive advice, intelligent technology and impactful solutions that empowers each one of them to reach their investment destination."
The Citizen
27-05-2025
- Business
- The Citizen
Dipping into retirement funds could cost more than you think
Early withdrawals shrink your retirement savings and prevent them from growing, which can leave you financially short in the future. It's close to the end of the month. Bills are stacking up, and your bank balance is low. Maybe the car needs urgent repairs, or an unexpected medical bill has thrown off your budget. In these moments, many South Africans have found themselves asking: should they dip into their retirement savings to make ends meet? Unfortunately, this has become a growing reality for many, according to the SpendTrend25 report, a collaborative study by Visa and Discovery Bank, that takes an in-depth look at South African consumer spending habits. The two-pot retirement system allowed South Africans to withdraw a portion of their retirement savings, resulting in 1.9 million applications and R35 billion in withdrawals by November. By January 2025, the South African Revenue Services reported that about two million South Africans withdrew from their savings pots, with a total gross lump sum of R43.42 billion paid out. While this system was designed to assist people with life's emergencies and encourage them not to use all the funds on changing jobs, the decision to withdraw even some of it can come at a much higher cost over the long term. Impact on long-term financial security The SpendTrend25 report, including data from Discovery Corporate and Employee Benefits retirement fund members, shows the following: 24% of retirement savings were withdrawn to cover home or car costs 21% of withdrawals were used to pay short-term debt 20% went towards school fees, and 11% was used for other daily expenses. This reveals how people are using money intended for long-term savings to cover immediate costs, even as inflation eases. But this shift from saving for retirement to spending money on immediate expenses can result in retirement funds not growing as fast and financial strain during later years when these savings are needed. Withdrawing from long-term savings is not sustainable financial behaviour, which makes education on long-term financial management crucial across all income groups. The burden of taxes on withdrawals Despite warnings that accessing funds from the savings pot is costly, many South Africans were shocked to find that taxes were levied on their early withdrawals. Retirement fund contributions are tax-deductible, so any withdrawal, whether at retirement or before retirement from your savings component, is taxed as income. This highlights the need for more awareness regarding the implications. Missed opportunity for financial growth By withdrawing from retirement funds prematurely, individuals decrease the overall growth of their retirement savings over time. Contributions to retirement accounts typically benefit from compound interest or from earning interest on interest, which accelerates growth. Early withdrawals shrink your retirement savings and prevent them from growing, which can leave you financially short in the future. Financial tools and education can help to plan for the future To combat this issue, Vitality Money, Discovery Bank's behaviour-change programme that rewards people for managing money well, offers a solution. The platform helps clients track and improve their financial habits, making it easier to build emergency savings, manage short—and long-term debt, and have all the necessary types of cover to help manage all financial commitments. 'Discovery data shows a clear link between financial behaviours and retirement savings preservation. Higher Vitality Money statuses generally indicate better financial habits. For example, Discovery Retirement Fund members with a higher Vitality Money status are less likely to withdraw from their retirement savings,' says CEO of Discovery Bank, Hylton Kallner. While higher earners might seem less likely to dip into their retirement savings, the data shows a different trend. Withdrawal rates were higher among high-income earners with a low Vitality Money status than among lower-income earners with a higher Vitality Money status. This highlights a key insight: Smart financial habits matter more than income when it comes to protecting long-term savings. Financial tools and education can play a critical role in helping individuals manage their finances to avoid relying on retirement savings for short-term needs.
The Citizen
27-05-2025
- Business
- The Citizen
SpendTrend25: Why South African wallets are shrinking
In response to increasing financial strain, many turned to their retirement savings, such as the two-pot retirement savings system, to provide relief for essential expenses. Consumer spending on credit cards was muted, despite lower inflation, according to the SpendTrend25 report, a collaborative study by Visa and Discovery Bank. The report analyses credit card spend data across South Africa between 2019 and 2024, spanning 12 million credit cards and 2.6 billion transactions. Discovery Bank CEO, Hylton Kallner, says, 'Our latest comprehensive report identifies shifts in financial behaviour for practical insights into how much people spent, what they spent on, and how they spent it. We've also supplemented the analyses with detailed consumer survey data to gain a deeper understanding of the drivers of the trends that we're observing.' In 2024, inflation fell from 6% to 4.4%, yet consumer spending in South Africa remained flat. While we would expect lower inflation to mean more money to spend, the reality is far different. The SpendTrend25 report reveals a clear trend: many consumers are still feeling the pinch, and with less money to spend, spending habits are shifting. Here's how… Rising costs and less disposable income Although inflation has dropped, interest rates reached 11.75% and remained high for most of 2024. The cost of everyday essentials such as groceries, fuel, and utilities also continued to rise. This is putting a large portion of South Africans' budgets under pressure, leaving less disposable income for other purchases. According to the Euromonitor Voice of the Consumer, 86% of South Africans surveyed feel that the cost of everyday items is rising, which demonstrates the widespread impact of inflation and why it's harder for consumers to afford the things they need. Turning to retirement savings for relief In response to increasing financial strain, many turned to their retirement savings, such as the two-pot retirement savings system, to provide relief for essential expenses. By January 2025, the South African Revenue Services reported that about two million South Africans withdrew from their savings pot with a total gross lump sum of R 43.42 billion paid out. The SpendTrend25 research among Discovery Corporate and Employee fund members found they are using their retirement savings for expenses such as home or car costs, paying off short-term debt, school fees and daily expenses. Among Discovery Bank clients, two-pot withdrawal rates were inversely correlated with Vitality Money status. There were higher withdrawal rates for high-income earners with a low Vitality Money status than for lower-income earners with a higher Vitality Money status, highlighting the importance of smart financial habits and sound financial planning. The shift toward value-based spending As consumers become more cost-conscious, value-based spending is gaining traction. 'We've seen a material shift to digital payments in our spend data, this is backed up by consumer preferences whereby over 80% of South Africans surveyed are choosing cards or digital payments over cash whenever they can, and the same percentage engage more with their credit card rewards and benefits than they did a year ago as they focus on value-based spending,' says Kallner. According to the Euromonitor Voice of the Consumer survey included in the SpendTrend25 report, up to 41% of local shoppers now buy more from stores where they have a loyalty card or store credit. The rising uptake and use of these benefits show that consumers want maximum value and offset rising prices by earning rewards or discounts. Discovery Bank has seen that one of the key motivators for clients to adopt healthy financial behaviours with its Vitality Money programme is the ability to book discounted flights and accommodation with Vitality Travel and pay less than the average consumer. Subscriptions to generate value Another shift in consumer spending is the rise of subscriptions. As people face financial pressure, whether from high living costs, interest rates, or stagnant incomes, they have to make careful choices about where to spend their money. Subscription services were once dominated by streaming. By 2024, they have now expanded to include artificial intelligence, sports bookings, and other eCommerce platforms. AI subscriptions saw the highest growth in the share of spend, growing over three times from last year. For Discovery Bank clients, the adoption of AI subscriptions such as ChatGPT and Perplexity have grown more than three times in 2024 compared with the previous year, further demonstrating the shift towards these recurring subscription services. Convenience at a price With busy lifestyles becoming the norm, convenience has become a big factor in how people choose to spend their money. The report highlights that spending on eating out and takeout grew by 12% in 2024 compared with just a 6% increase in in-store shopping. Added to that, it's much easier for shoppers to resist a tempting treat and stick to their grocery budget while adding to a cart on Checkers Sixty60 or Woolies Dash. This is supported by Discovery Vitality data, which shows that online grocery baskets contain 30% healthy food items, compared to 27% in-store. This shift suggests that, even while disposable income may be shrinking, people are still mindful of health-conscious spending, even when opting for convenience. But while convenience is a priority for many, it often comes at a premium, leading consumers to spend more on services that save them time but also increase pressure on their wallets.
IOL News
08-05-2025
- Entertainment
- IOL News
Scotts Maphuma receives support from Makhadzi, Oskido, and Black Coffee following his public apology
Rising star Scotts Maphuma with music industry legend Oskido at his restaraunt Daruma. Oskido met with the young star who has been experiencing public scrutiny. Image: Intagram/scotts_maphuma Following his public apology, rising amapiano artist Scotts Maphuma has been shown support from renowned names in the industry such as singer Makhadzi and DJs and music producers Oskido and Black Coffee. Multi-award-winning Makhadzi on X shared that she felt like apologizing on Scotts Maphuma's behalf. The 'Number 1' hitmaker explained that she realised the musician was excited and forgot people who streamed his music including her. 'I am his fan but I was disappointed. I am glad he came back to his senses. We love him,' said Makhadzi. At some point i felt like apologising on skot maphoma behalf cz i realised he was just exited and forgot people who streamed his music including me . Iam his fan bit i was disappointed. Iam glad he came back tohis senses. We love him ♥️. the truth is we are nothing without… — Makhadzi (@MakhadziSA) May 7, 2025 The 2025 Metro FM Music Awards Artist of the Year got candid and said that without her fans, she would be nothing and recalled how she owed the South African Revenue Services (SARS) and how fans were beside her. 'The truth is we are nothing without you guys. I remember owing SARS 6M and I had nothing through your support I managed to make peace with the government. We are nothing without you guys. I know when you love a person you mean it.' Scotts Maphuma, whose real name is Mpho Lenora, found himself under public scrutiny after expressing his frustration over the constant scrutiny from the public. He even went as far as to say that South Africa could cancel him, and maybe he would be free. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ got candid and said that without her fans, she would be nothing and recalled how she owed the South African Revenue Services (SARS) and fans were beside her. 'The truth is we are nothing without you guys. I remember owing SARS 6M and I had nothing through your support I managed to make peace with the government. We are nothing without you guys. I know when you love a person you mean it.' Scotts Maphuma, whose real name is Mpho Lenora, found himself under public scrutiny after expressing his frustration over the constant scrutiny from the public. He even went as far as to say that South Africa could cancel him, and maybe he would be free. want to take a moment to sincerely apologize to all my supporters. I've let some of you down, and I take full responsibility. Growth comes with owning your mistakes and I'm committed to doing better, for myself and for you. Thank you for still believing in me. — Real Scotts Maphuma (@RealScotts_M) May 7, 2025 The 'Sahyi'Moto' hitmaker took to his X and penned an apology to his supporters. 'Want to take a moment to sincerely apologize to all my supporters. 'I've let some of you down, and I take full responsibility. Growth comes with owning your mistakes and I'm committed to doing better, for myself and for you. Thank you for still believing in me.' Metro FM Music Awards Lifetime Achievement recipient, musician and DJ Oskido spent some time with the young talent at his restaurant, Daruma, in Waterfall. Taking to Instagram, Oskido gave insight into their link-up, 'Always room to listen, reflect and grow. Proud of the young king exciting steps ahead.' Grammy award-winning musician and DJ, Black Coffee on X, simply wrote, Scotts Maphuma's name and a praying emoji, which many are taking as a sign of support. Scotts Maphuma🙏🏿 — Black Coffee (@RealBlackCoffee) May 7, 2025 IOL Entertainment
The Citizen
05-05-2025
- Business
- The Citizen
A guide for property buyers and sellers: This is why your estate agent asks so many questions
Under Fica, estate agents are obligated to establish and verify the identity of their clients before concluding financial transactions with them. When buying or selling property, estate agents usually ask many questions about your financial position. This can be headache for many people, however, there is a compelling reason why this is done. Paul Stevens, CEO of Just Property, said many people are puzzled when they realise how many personal details are required. But there is a clear reason behind the requests for identification documents, proof of address and financial records. ALSO READ: SA's six most popular provinces where people want to live Fica's role in the property sector The Financial Intelligence Centre Act (Fica) was introduced in July 2003 to fight financial crimes such as money laundering, tax evasion, terrorist activities and financing of weapons of mass destruction. 'How, you may ask, does this have anything to do with me buying or selling my property?' Stevens said that before the introduction of Fica, the real estate sector was susceptible to financial crimes, especially money laundering and terrorism financing risks, because criminals were able to use property transactions as a means to easily integrate illicit funds into the legal economy, while creating a safe and often lucrative investment for themselves. Documents needed when buying property He adds that under Fica, estate agents are obligated to establish and verify the identity of their clients before concluding financial transactions with them. 'This means that without Fica verification an agent may not accept a mandate from a seller, nor may they conclude a sale agreement. If they do not comply, then they face penalties and legal consequences.' Common documents requested: A certified copy of your ID document or passport to prove your identity. A utility bill – not older than three months – or lease agreement to confirm your residential address. Your tax number to prove you are registered with South African Revenue Services (Sars). Confirmation of your bank account. Proof of the source of funds to be used to finance the transaction. 'If you are self-employed or run your own business, you may have to supply the agent with supplementary information.' ALSO READ: More South Africans buying houses for less than R700k. Here's why Sharing of documents Stevens said that personal details of clients will be kept safe as estate agents are bound by strict confidentiality. 'Your documents will only be shared with necessary parties, such as the conveyancing attorney handling the sale of the property or the bank processing your bond.' He highlighted that in 2024, the Financial Intelligence Centre (FIC) updated its risk assessment guidelines for legal practitioners and estate agents, significantly expanding the risk factors estate agents must consider in property transactions. 'The revised guidelines, based on insights from the Financial Action Task Force and regulatory reports, outline 13 key risk indicators. 'These include clients refusing to provide identification, accepting third-party payments from jurisdictions with weak anti-money laundering controls, and tenants hesitating to grant agents access to rental properties.' Estate agents in Cape Town Stevens added that the Financial Action Task Force and regulatory reports also highlight the connection between financial crimes and high-value properties, emphasising geographic risks. 'For example, estate agents operating in affluent areas such as Franschhoek, Stellenbosch, Cape Town's Atlantic Seaboard and Constantia are advised to implement stricter measures to mitigate money laundering and terrorist financing risks.' In accordance with the above and with the rules set down by the Property Practitioners Regulatory Body (PPRA) and Fica, estate agents are obliged to report any suspicious or unusual transactions to FIC. 'Such transactions could include reluctance to provide information, unusual funding sources and transactions that appear to be above the client's means. 'Deposits paid by third parties and purchases made in the name of third parties are also red flags.' NOW READ: Thinking of buying your first home, here are five key issues to consider
