Capitec Shares Advance After Bank Gives Earnings Update

Capitec Bank Holdings Ltd., South Africa’s second-largest provider of unsecured loans, gained the most in more than six years in Johannesburg trading after saying first-half earnings will rise as much as 22 percent.

Capitec climbed 9.1 percent, the biggest gain since April 2008, to 232 rand at the close in Johannesburg. The volume of shares traded represented almost five times the three-month daily average.

Earnings per share for the six months through June will be 18 percent to 22 percent higher than a year earlier, the Stellenbosch-based lender said in a statement today. The announcement comes after the collapse last month of competitor African Bank Investments Ltd. South Africa, Capitec’s only market, is battling high unemployment and inflation that has breached the central bank’s 6-percent upper limit.

“Transaction income grew significantly not only because of an increase in client numbers, but also because we attracted clients in higher income groups who do more transacting,” the lender said. “Growth in retail was satisfactory under the current market conditions and the bad debt results were in line with our risk appetite which factored in these market conditions.”

Capitec is scheduled to make a full earnings announcement on Sept. 29.

Before it's here, it's on the Bloomberg Terminal.