Analysts are banking on better revenue from fees to offset an expected rise in bad credit when Capitec releases its annual results for the year to end-February. Brad Preston, chief investment officer at Mergence, said he expected impairments to increase at a slightly higher level than the big four banks. But a deterioration in its credit book was not expected to be unmanageable, given that the company had indicated its earnings per share would grow. In a trading statement released this week, the bank said it expected that headline earnings per share would be between 15% and 19% higher than the previous period. Avior banking analyst Harry Botha said that this didn't imply any major surprises in terms of credit impairment. Preston expected Capitec to continue showingstrong transactional and deposit growth. The half-year results for the six months to August showed that Capitec had 7.9million customers. At the time that these results were released, the bank said that it was signing up a...
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