Trustco’s Q3 profits down 7%

Trustco, the diversified financial services Group, has announced a 6.9% drop in third quarter profits attributed to the launch of Yambu, a micro insurance product in South Africa.
For the quarter ending 31 December, the group recorded a net profit of N$52.6 million down from the normalised profit of N$56.5 million in the comparative period.
Headline earnings per share for the period is 7.31 cents and basic earnings per share is 7.34 cents.
Despite the drop in profits, the educational loan book grew by 16% resulting in year on year profits of the division growing by 22.5%. In a statement, Trustco says this strong growth was achieved through strategic partnerships with international lending institutions which culminated in borrowing arrangements which were primarily focused to grow the loan book.
The Namibian micro-insurance segment’s after tax profits also grew by 12.6% from the comparative period, and significantly increased the group’s customer offering.
The group also said the trial roll-out of the micro-insurance life cover offered through Shoprite retail outlets in Namibia has yielded positive results. “Management is now content that the experiment can be tried in other regions of the continent, albeit selectively,” the statement from Trustco said.