Capitec jumps almost 8% as it flags earnings growth

  • 📰 Fin24
  • ⏱ Reading Time:
  • 23 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 13%
  • Publisher: 63%

Business News News

Business Business Latest News,Business Business Headlines

Capitec, SA’s largest retail bank by customer numbers, has flagged a modest uptick in interim earnings as financial pressures on consumers led to higher credit impairments.

The Stellenbosch-headquartered lender, which has more than 20 million active clients, advised shareholders on Friday that group headline earnings per share are expected to rise between 8% and 10% for the six months to end-August 2023, up from a restated R37.36 for the comparative period. The restatement relates to the implementation of IFRS 17 Insurance contracts standard at the beginning of March.

Capitec said it tightened its credit extension criteria during the six months to end-August to appropriately address the risk in its loan book created by adverse economic conditions characterised by persistent inflationary pressures and higher borrowing costs. "This led to consumers being under financial pressure, which impacted the retail bank loans and advances and resulted in a higher credit impairment charge and credit loss ratio."

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 21. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Bell Equipment jumps as it flags up to two-thirds surge in earningsShares Bell Equipment, which makes and sells heavy machinery such as dump trucks and forklifts, jumped more than 8% on Thursday after it flagged a surge in earnings for its half-year to end-June.
Source: News24 - 🏆 4. / 80 Read more »