South African stock alert


Morning Alert: Capitec Bank down 3.2% in 2 days 18 October 2017 10:50 SAST


Capitec Bank Holdings Limited (J:CPI) extended its slide on Wednesday, shedding an additional ZAR15.18 (or 1.6%) to trade at ZAR922.28. Trading volume was 56% of average so far today. The shares have fallen ZAR30.0 (or 3.2%) over the past two trading days vs. the FTSE/JSE- Africa Top 40 Index which has fallen 0.6% in the same period.

SECTION 1: Technical indicators


The price decreased 0.2% in the last week.

Fundamental measures by comparison with the sector average [in brackets] indicate:


Return on Equity 23.6% [15.7%]

Return on Assets 5.2% [1.5%]


Price/Earnings of 28.2 [12.4]

Price to Book of 6.8 [2.1]

Dividend yield of 1.6% [4.0%]



The positive 14.11 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal (12-day minus 26-day Exponential Moving Averages). Both the 12-day and the 26-day EMA are rising - another bullish signal. In the past week, the stock's MACD has been positive every day, a reinforcing bullish signal.

The 3.8% discount to 12-month high of ZAR958.76 against the 47.3% premium to 12-month low of ZAR626.24 suggests the stock continues to push for new highs.

The stock has outperformed 88% of the South African market over the past 6 months.

In the last three months the stock has hit a new 52-week high eighteen times, pointing to a significant uptrend.

The present value of ZAR1,000 invested one year ago is ZAR1,400 [vs ZAR1,154 for the FTSE/JSE- Africa Top 40 Index], including a capital gain of ZAR388 and dividend reinvested of ZAR12. The total return to shareholders for 1 year is 40.0%.

SECTION 2: Ranking

DescriptionValueRank In Market
MCap $US billion8In Top Quartile
Price/MAP2001.15In Top Quartile
Today's Volatility %0.9In Top Quartile
52-week Range (in ZAR)626.2-958.8
1-month Range (in ZAR)850.0-958.8

SECTION 3: Earnings

FY2017 Annual Report: Capitec Bank maintains double digit EPS Growth

Capitec Bank (J:CPI), announced EPS of ZAR32.67 ($US2.49) for the year-ended 28 February 2017, up 17.8% from ZAR27.73 ($US1.72) in the previous year. For the year-ended 29 February 2016 the company had reported EPS growth of 25.7% from ZAR22.06 ($US1.89) for the year-ended 28 February 2015.

SECTION 4: Recent Reported Selling

October 16: Capitec Bank director sells

Capitec Bank (J:CPI) director AP du Plessis sold 10,000 shares worth ZAR9,354,301 ($US696,895) on October 13. The selling price was ZAR935.43.

October 12: Capitec Bank substantial shareholder sells

Capitec Bank (J:CPI) substantial shareholder Rational Expectations Proprietary Limited sold 22,223 shares worth ZAR20,123,371 ($US1,487,117) on October 10. The selling price was ZAR905.52.

SECTION 5: Recent News of Capitec Bank

October 10: Capitec Bank announces dividend

Capitec Bank today announced an interim dividend of ZAR4.20 per share. The record date is Tuesday, October 17, 2017 and it is payable on Monday, October 23.

September 29: Capitec Bank Holdings Limited - General Repurchase Of 3.11% Of The Non-redeemable, Non-cumulative, Non-participating Preference Shares

In 2010 the Basel Committee on Banking Supervision published its global regulatory framework for more resilient banks and banking systems ("Basel III"). The Regulations relating to Banks were amended to provide, among other things, for the implementation of Basel III in South Africa, which came into effect on 1 January 2013.

September 27: Capitec Bank Holdings Limited - Quarterly Disclosure In Terms Of Regulation 43 Of The Regulations Relating To Banks

Capitec Bank Holdings Limited and its subsidiaries ("group"), have complied with Regulation 43 of the Regulations relating to banks, which incorporates the requirements of Basel.

In terms of Pillar 3 of the Basel rules, the consolidated group is required to disclose quantitative information on its capital adequacy and liquidity ratios on a quarterly basis.

September 27: Capitec Bank Holdings Limited - Unaudited Financial Results For The 6 Months Ended 31 August 2017

Unsecured lending competitive with the secured credit market

We now offer unsecured credit at an interest rate from as low as 12.9%. There are no legal or administration costs to register an asset and the loan is instantly available with no waiting period.

We make banking simple to suit the needs of our clients.

September 06: Capitec Bank Holdings Limited - Voluntary Trading Statement

In accordance with the Company's custom to keep shareholders informed, the board advises that a reasonable degree of certainty exists that for the half year ended 31 August 2017:

- headline earnings per share will be between 1745 cents and 1790 cents per share, representing an increase of between 15% and 18% compared to the 1517 cents per share reported in the previous period ended 31 August 2016; and

- earnings per share will be between 1741 cents and 1787 cents per share, representing an increase of between 15% and 18% compared to the 1514 cents per share reported in the previous period ended 31 August 2016.

The financial information on which this trading statement is based has not been reviewed and reported on by Capitec's auditors.

Capitec Bank Holdings Limited (J:CPI; JNB:CPI; SJ:CPI)

ISIN: ZAE000035861

PermID: 4295888586