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Capitec reels on new Viceroy Report

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Capitec Bank - [https://businesstech.co.za/news/wp-content/uploads/2016/05/Capitec-on-wall.jpg] Capitec Bank - [https://businesstech.co.za/news/wp-content/uploads/2016/05/Capitec-on-wall.jpg]

Viceroy, the group that exposed accounting fraud at Steinhoff, has struck again.

After weeks of speculation about which SA firm it had in its sights, the group on Tuesday published a report on SA bank Capitec [JSE:CPI] and the unsecured lender is feeling the heat.

Capitec’s shares were trading down 7.8% on Tuesday at 10:30, after earlier trading down 10%.  The best performing share on the JSE over the last ten years has seen a drop of 20% since Friday.

Viceroy came to prominence for SA investors after it released a report into Steinhoff shortly after the Stellenbsoch-headquartered firm’s share price tanked. 

In its new 33-page report, published and uploaded to its website, the short sellers said the did not but Capitec’s 'good news story'. 

“Capitec Bank Holdings Limited is a South Africa-focused microfinance provider to a majority lowincome demographic, yet they out-earn all major commercial banks globally including competing high-risk lenders,” the group wrote.  

“We don’t buy this story. Viceroy believes this is indicative of predatory finance which we have corroborated with substantial on-the-ground discussions with Capitec ex-employees, former customers, and individuals familiar with the business”.

Capitec did not immediately reply to a request for comment. 

 


 

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Fin24 

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