Michael Sassoon on Sasfin’s five-point coronavirus plan

Sasfin Holdings recently reported an interim 5.67 per cent increase in earnings per share, attributed to improved credit quality. The group's strategy to exit direct private equity after poor performance in recent years has also impacted their financials positively. Sasfin Group CEO, Michael Sassoon, joined CNBC Africa for an interview discussing the company's outlook in the face of the current economic challenges sparked by the COVID-19 pandemic. With a focus on the impact of interest rate cuts, the group's response to the crisis, and strategies for creating value for shareholders, Sassoon shed light on Sasfin's five-point plan to navigate through these unprecedented times. In the interview, Sassoon expressed his hopes for a significant interest rate cut by the Reserve Bank to ease the financial burden on businesses amid the economic slowdown. He mentioned that even a minimum of 50 basis points would be beneficial, but he hoped for up to a 1% reduction to support struggling businesses. Moreover, he highlighted Sasfin's commitment to ensuring the health and safety of their community while maintaining business continuity by enabling remote work for their employees. Concerns were raised about the impact of COVID-19 on small businesses and the economy at large. Sassoon acknowledged the likely reduction in loans and advances to small businesses, which could affect their profitability and overall economic health. He called for urgent measures from policymakers to stimulate the economy, particularly focusing on supporting small businesses, which are crucial for the economy's vitality. Regarding the value creation for shareholders, Sassoon emphasized that Sasfin's priority during these uncertain times is to prioritize the well-being of all stakeholders, including clients and staff. He mentioned ongoing discussions with RISE, a financial investor funded by European Development Finance Institutions, despite potential delays in the investment process due to the current crisis. Sassoon reiterated the company's long-term view and commitment to doing what's best for all stakeholders, including shareholders, in the short term. As Sasfin Holdings navigates through the economic challenges presented by COVID-19, the company's adherence to sound business principles, focus on business continuity, and commitment to supporting small businesses remain central to their strategy. Sassoon's insights shed light on Sasfin's resilience and proactive approach in mitigating the impact of the crisis on their operations and stakeholders.