TFG: Credit on tap

TFG’s market pleasing results for FY16 was driven mainly by lower bad debt provisions, but we find that debtor repayments may not have improved significantly in FY16, and the lower provisions may be a result of improved payment patterns in the latter part of its financial year. Nevertheless, TFG has a strategic advantage in its ZAR9.1bn credit war chest, which means it can allocate, on average, a further ZAR4063 credit to each customer without any regulatory hurdles.