July 3, 2020 / 1:41 PM / a month ago

BRIEF-Capitec Bank Says HY HEPS, EPS To Decline By More Than 70%

July 3 (Reuters) - Capitec Bank Holdings Ltd:

* CREDIT IMPAIRMENT CHARGE IS 145% HIGHER THAN EXPECTATION

* CAPITEC INCURRED A LOSS OF R404 MILLION FOR QUARTER ENDED 31 MAY 2020

* COVID-19 NATIONAL LOCKDOWN RESULTED IN INCREASED CREDIT IMPAIRMENT CHARGES

* CREDIT IMPAIRMENT CHARGE IS PREDOMINATELY DUE TO R5.75 BILLION AND R236 MILLION IN RETAIL AND BUSINESS CREDIT BALANCES

* DUE TO OUR CONSERVATIVE APPROACH GROUP PROVISION FOR CREDIT IMPAIRMENTS INCREASED BY R3.3 BILLION SINCE FEBRUARY 2020

* HY HEPS AND EARNINGS PER SHARE WILL DECLINE BY MORE THAN 70%, OR MORE THAN 1782 CENTS AND 1784 CENTS, RESPECTIVELY

* DO, HOWEVER, BELIEVE THAT RESULTS FOR SECOND HALF OF 2021 FINANCIAL YEAR COULD RETURN TO NORMAL LEVELS Source text for Eikon: Further company coverage:

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