In October last year, the NCR announced its investigation of a number of listed lenders, including Abil, Capitec, First National Bank, and Abil.
The Abil investigation followed complaints of reckless lending received by the NCR.
In February the NCR referred the matter to the National Consumer Tribunal and proposed that it impose a fine of R300m of the bank.
At the time, Abil stated that in November 2011, one of the bank’s internal investigative teams discovered that the loan origination system had been fraudulently breached by agents at its Dundee branch. The fraudulent activity related to manipulation of Abil’s affordability calculations and affected 397 customers and loans to the capital value of R15,5 million. Three agents were dismissed for fraud following an internal investigation.
On Thursday Abil said that, “through a process of mutual cooperation,” it had resolved the matter with the NCR and agreed to pay the settlement and that these matters had been withdrawn from the NCT with immediate effect.
Abil expects to release its full year results for the year ended September 30 2013 imminently. It expects headline earnings to drop by between 58% and 63%, according to its latest trading statement.
Following the announcement on SENS, the bank’s shares took a knock, falling 1.03% to R18.21 by 15:33.