Capitec warns of 82% plunge in earnings

BANKING and financial services group of companies Capitec Banking Holdings Limited has warned of a fall in interim profits of up to 82%.

According to a Business Live report, this is caused by higher bad-debt expenses and lower transaction volumes.

The company had alerted current and prospective shareholders of a fall in profits of more than 70% in July, saying at the time its credit impairments were 145% higher than expected, and had increased N$3,3 billion since the beginning of March this year.

However, Capitec in a trading update yesterday said it should be expected cleaned earnings per share would fall between 78% and 82% at interim.

“The board now wishes to advise that a reasonable degree of certainty exists that for the half year ended 31 August 2020, headline earnings per share will be between 559,90 cents and 458,10 cents per share, representing a decrease of between 78% and 82%,” read the trading update.

Last year over the same period, headline earnings were at 2 549 cents per share.

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