Today’s Biz Headlines: Capitec Profit Decline, SAA Rescue Package & PPC Reports Strong Gains

Capitec profit slumps 78%, but client income has recovered

Capitec’s headline profit fell by 78% to R650 million in the six months to end-August. The group impaired R5.8 billion for bad debts, and rescheduled payments for R7.5 million in loans.

“Banking clients’ income was negatively impacted by the lockdown and decreased by 25% in April 2020 compared to March 2020. By August income had returned to March 2020 levels,” Capitec said.

Loan sales fell by 35% over the past six months, compared to the same period last year. Net transaction fee income increased by 3% to R3.6 billion for the 6 months.

At the end of August, client deposits totalled R97.6 billion, an 11% increase compared to February. Funeral plan income doubled to R350 million. The bank added 800,000 clients in the past six months, to reach 14.7 million at the end of August. No interim dividend was declared.

SAA ‘mothballed’

The business rescue practitioners of SAA have effectively “mothballed” the airline as they wait for government to come up with more than R10 billion. All existing cargo and repatriation flights will be undertaken, but no new ones will be accepted.

PPC reports strong cement sales in SA

PPC has reported double-digit year-on-year growth of cement volumes in South Africa for June and July and have continued “at a high rate” in August and September. For these two months combined, PPC expects volume growth of more than 25% when compared to the prior year.

Business Insider SA

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