Rating retreat


Rating retreat


Published Date: 2020-07-09 | Source: INCE|Community | Author: Mark Ingham

Rating retreat

Ingham Analytics have issued an updated note on Capitec, one of the darlings of retail investors, smart institutional fund managers locally and overseas, depositors, and borrowers for many years. Net loans and advances have grown by a compound rate of 18% pa between F2012 and F2020 and deposits grew by 22% pa.

Substantial market share gains have been made by Capitec relative to the Big Four banks. Since the beginning of the year, the share price is down by around 45% - so Capitec hasn't been unscathed by COVID-19 fallout. Ingham Analytics pose the question, what price would you pay for Capitec in a post-COVID-19 world? In "Rating retreat" they unpack some fascinating data and draw an interesting conclusion. This is a must-read for those following the banking sector.

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