The share price of Capitec [JSE:CPI] jumped more than 4% after the bank released a strong profit update.
For the six months to end-August, its headline earnings per share rose by between 18% to 21%, the company said
Its share price rose by 4.5% to R1,165.48 in reaction. After reaching levels of above R1,400 earlier this year, its share price has been under pressure in part due to the new Credit Amendment Bill, which could result in millions of South Africans having their debts written off completely.
Anyone who is overindebted, earns less than R7,500 a month, and has R50,000 in unsecured debt (not car finance or home loans) can apply to get their debts written off.
However, recently Capitec said that its exposure to this part of the market has been reduced and that less than 5% of its outstanding loans are extended to people who earn less than R7,500 a month.
In the year to end-February, it released its headline earnings rose 19%
Its results will be published around 26 September 2019.