WAIT­ING ON DE­TAILS

Finweek English Edition - - INVESTMENT -

Capitec’s* trad­ing up­date for the six months end­ing June sees HEPS com­ing in 18%22% higher. This sent the stock up 6% at one stage as the ex­pec­ta­tion was a much more mod­est 13% for the full year. The big­ger pic­ture is that growth is slow­ing – the pre­vi­ous full year saw HEPS up around 35% (it­self down on pre­vi­ous years of +50% growth). The slow­down in growth is, in part, due to the bank’s size (a com­pany can’t grow at mas­sive num­bers for­ever) but also cer­tainly due to a rise in bad debts. That bad debt part of the equa­tion is what ev­ery­body wants de­tails on when re­sults come out in late Septem­ber. On cur­rent met­rics the stock is look­ing cheap – but let’s wait for those bad debt de­tails.

Capitec Bank Hold­ings

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