NEWS ANALYSIS: Capitec struts into big four banking territory
Capitec trades at a new high of R911 with a market value of R105bn, overtaking Nedbank for the first time
Capitec has overtaken Nedbank in terms of market capitalisation despite having only one-tenth of Nedbank’s assets. On Friday, Nedbank traded at R204.99, with a market capitalisation of R102bn. Capitec rose to a new high of R911 with a market value of R105bn, meaning Nedbank has fallen out of the top four big bank league, represented by Firstrand with a market cap of R306bn, Standard Bank with R266bn and Barclays Africa at R120bn. Nedbank’s total assets, reflecting its lending base on the balance sheet, stands at R965bn, while Capitec’s total assets amount to R73bn. "Capitec’s robust risk management processes and correct pricing of risk has meant it had been able to navigate the macro challenges prevailing relatively unscathed," said Momentum SP Reid analyst Brian Mugabe. Nedbank is trading at a price: earnings ratio of 9 and Capitec is at 27.Capitec’s share price dropped sharply last week after informing the market it expected interim earnings at end-August to be 15%-18% higher comp...
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