Capitec earnings hard hit by COVID-19

File: Capitec

File: Capitec says it's trying to establish how the retailer was able to deduct the amounts twice.

Reuters

JOHANNESBURG - Capitec is the latest bank to report results showing a devastating hit from COVID-19.

Headline earnings for six months to end August fell 78-percent as customers borrowed and transacted less during the lockdown.

Capitec is the country's largest bank by customer numbers.

It's highly exposed to the low-income segment of the population which was worst hit by job losses during the lockdown.

The group tightened its lending criteria as the country headed towards lockdown, with loan sales to end-August down 35-percent compared with the prior year.

The lockdown contributed R4.2-billion of a R6.3-billion gross impairment charge but shareholders still saw Capitec as a good buy.

The share price up more than five-percent on Wednesday.

Source
eNCA