Capitec provides detailed rebuttal of Viceroy report
The bank denied the short-seller’s claim that it could not reconcile its loan book, that it would need to impair R11bn in bad loans and that it was rolling over bad loans
Capitec issued a detailed rebuttal on Monday to the three main allegations levelled at it by short-seller Viceroy Research on January 30. The bank’s response to Viceroy followed a Conclusion of Matter letter from Benguela Global Fund Managers published on Friday. Benguela thanked Capitec’s public response to its questions in a note saying: "We appreciate the exemplary way in which you handled our concerns. We are comfortable with your extensive explanations." In its response to Viceroy on Monday, Capitec said it denied the short-seller’s claim that it could not reconcile its loan book, that it would need to impair R11bn in bad loans and that it was rolling over bad loans. Capitec provided figures going back to 2015 showing how it calculated its opening and closing gross loans each year. "Our loans and advances reconcile and are not misrepresented by including rescheduled loans through the issuance of new loans as alleged in the Viceroy report," Capitec said. Regarding Viceroy’s clai...
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