Finance

South Africa: Capitec Bank reports 82% drop in profit-risk

South Africa: Capitec Bank reports 82% drop in profit-risk
Wednesday, 09 September 2020 15:40

Capitec Bank, South Africa's third-largest bank by stock market valuation, reported that its net profit for the first half of FY2020 will be down 82% YoY. The group attributes the contraction to the increase in provisions for bad debts and a weak dynamism on financial transactions.

For FY2019, which ended in February, the group's managers decided not to distribute any dividends claiming that despite an improved performance, it was prudent to preserve resources to respond more flexibly to the consequences of the covid-19 pandemic.

A month ago, the company mentioned this risk of a drop in profit, but with a more positive note for the future.
“We believe that the results for the second half of 2021 could return to normal levels. We will provide further guidance when there is reasonable certainty about the overall earnings range,” Capitec Bank officials said.

Idriss Linge

On the same topic
Visa promotes risk-based compliance to strengthen oversight and trust Initiative targets AML gaps as DRC remains on FATF gray list Banks face...
Speedinvest, the Vienna VC firm, opened its first dedicated MEA fund last week, anchored by EIB Global, Mubadala and Qatar Investment...
Funding targets financial inclusion through Morocco’s insurance sector Program focuses on underserved populations, including women and...
Mediterrania Capital bought Australian Amcor's Moroccan packaging unit Enko Capital took over Servair's Ivorian fast-food business hours...
Most Read
01

Enko Capital acquires Servair’s fast-food unit in Côte d’Ivoire, including the Burger King franchi...

Enko Capital Buys Burger King Côte d’Ivoire in Servair Restructuring
02

From eastern Chad, where measles and meningitis are spreading through overcrowded refugee camps, to ...

Weekly Health Update | Vaccination Gains Advance in Africa; Antimalarial Resistance Threatens Progress
03

(EBID) - EBID aims to allocate nearly 41% of its commitments to projects with environmental and...

EBID makes giant strides for a green transition in west africa
04

As the Japanese automaker faces global headwinds, it is doubling down on its operations in Egypt, ai...

From South Africa to Egypt: Why Nissan is reshaping its African strategy
05

Mobile phones have become essential tools for work, education, payments and staying connected across...

EU Mandates Removable Phone Batteries. What It Means for Africa’s Device Market 
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.