(Ecofin Agency) - 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.