Viceroy Research names its new target: Capitec Bank
Its shares fell as much as 20%, before recovering most of the loss, after Viceroy called it a 'loan shark ... masquerading as a community finance provider'
Capitec Bank is the latest target of Viceroy Research – the team that produced an explosive report detailing how Steinhoff cooked its books to hide losses and inflate earnings. In a report released on Tuesday morning, Viceroy describes Capitec as a “loan shark with massively understated defaults masquerading as a community finance provider”. “We believe that the South African Reserve Bank and minister of finance should immediately place Capitec into curatorship,” it says. However, the Reserve Bank said that, based on available information, Capitec was solvent, well capitalised and had adequate liquidity. “The bank meets all prudential requirements,” the central bank said in a statement on Tuesday. Capitec CEO Gerrie Fourie said: “We have taken note of the Viceroy Report on Capitec Bank. We are currently in the process of investigating the report in detail and will respond appropriately.” At 10.13am Capitec was off 4.5% to R901, rebounding from an earlier 20% fall. The Capitec stock...
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