Mr Leon Kirkinis to me is like Richard Branson... a risk taker, very smart guy, very succesful with an impeccable track record of having done well in the unsecured lending space in the past, but it looks like the idea of aqcuiring this risky Ellerines portfolio wasn't smart idea at all. Everyone at the time should have told him to stick to what he knows best, (ie the loan advances space),however, in a Richard branson like style the guy decided to go against the grain. No wonder the share price has dropped by over 40%. now. Nevertheless the Chef knows that SA's economy isnt in great shape at the moment, and a similar trend will be experienced by ABILS peers, but the chef thinks that in the long term they will be OK. ABIL and other credit providers will weather the storms.

He takes risks like a lowly crook who jumps over people's walls and robs them. He is no different to other criminals except he wears a suit and tie.

The legislated amount they can charge people is highway robbery. (Just like the new tolls!)
I believe it going to be reviewed. It should lowered by 10%+ & be made to include all other fees being charged!! I feel for those who HAD to use the facility, it is legal theft- and you know who's to blame??
Not sure if their figure is an actual amount or a provision! If the former, tsk tsk! Wait their share price will go even lower!

Unsecured lending = Unsecured investment.
How long were the baboons think they were going to keep on feeding the poor with loans they do not have the money to repay.
I am happy they are going down. They were like the devils advocate in the banking industry.

As long as all the borrowers in the US and EU think they will be able to do the same, and you know what, they're right because the big banker gangsters need the sheeple to keep paying little bits even if they never pay off 10% of their loans.

There is no logic in their business model......I can only assume that theyre relying on a gubment bail out.
Would like to know who are the major investors in this failed vehicle.

Well thee is actually: they get all the assets and still have the sheeple paying off little bits, while the state (taxpayer) carries the can! It's Goldman Sachs, JP Morgan and Barclays all over again!

Just raise another R5.5 billion in a rights issue. Why is it when little guys go to the wall they are crucified, for a couple of hundred thousand, mostly due to someone stealing from them or not paying, like government, but the big boys get away with murder? The world is insane, and these financial wizards and psychopaths all think we plebs are thick. Theu write off billions, but ask your bank for a loan, when you have collateral even, and they don't want to know? Is there a conspiracy, what the hell is going on, people?

Everyone should default on these loans. This crooked loan sharking scheme will not be able to do a thing about it!

It's part of the economic cycle. All banks go through this encounter. Now is actually a fantastic time to by ABIL equity instruments, given it's diminshed value. When the cycle changes again one is in for big capital gain.

Cash loans at insane interest rates should not be "normal".

Demand and Supply. There is a demand for credit, lenders supply. The business model would not be successful if there weren't demand. Right?

The problem is that the "demand" for cash is somewhat different to the demand for goods and services and the impact on the economy is epic.
The credit is also not being used to generate commercial activity or production... the loans are mostly being used to fund day to day living expenses such as rent, water & school fees. (there is a much longer answer i know)

This bank African Bank just gave loans to people that could not afford it! They will give loans to pensioners who has no other income and charge them to death with interest!

No African Bank are greedy crooks!

Is this a surprise? Banks pretending to know what they are doing are no different from pyramid schemes.

It is a large loan sharking scam!

Correct - and yet they and many others (like the loan sharks masquerading as furniture retailers) are paraded darlings of the JSE as they milk the debt burden. I wish them much pain and suffering, although that means pain for those poor souls on their books.

It is going to crash anytime