January 30, 2018 / 2:55 PM / 7 months ago

BRIEF-Capitec Bank Says Still Seeking Clarity On Some Of Allegations In Viceroy Research Report

Jan 30 (Reuters) - Capitec Bank:

* “‍WE ARE STUDYING VICEROY RESEARCH​ REPORT SYSTEMATICALLY AND ARE STILL SEEKING CLARITY ON SOME OF ALLEGATIONS”

* ‍”WE CAN CONFIRM ESTIMATE IN VICEROY REPORT DOES NOT ACCURATELY CALCULATE CLIENT REPAYMENTS” ON ALLEGATION CAPITEC FABRICATES NEW LOANS

* ‍ESTIMATE OF CAPITAL REPAYMENTS OF R16.7 BILLION UNDERESTIMATES ACTUAL LOAN RECEIPTS NET OF FEES OF R18.6 BILLION (RECEIPTS LESS FEES) BY APPROXIMATELY R1.9 BILLION

* “‍REPORT IS FLAWED WITH INACCURATE STATEMENTS”​

* CAPITEC SAYS “OUR IMPAIRMENT ON LOANS ARE BASED ON PROBABILITY OF DEFAULT” ON ‍ALLEGATION OF OVER-STATEMENT OF CAPITEC’S LOAN BOOK ​

* ‍”ASSUMPTION THAT COURT CASES MAY RESULT IN A CLASS ACTION IS SPECULATION OF HIGHEST NATURE AND PREMATURE”​

* CAPITEC SAYS “OUR ATTORNEYS HAVE REGISTERED A FORMAL COMPLAINT WITH FINANCIAL SERVICES BOARD”​

* ‍”INCORRECT CORRELATION BETWEEN OUR CREDIT FACILITY AND DISCONTINUED MULTI-LOAN FACILITY” IN VICEROY RESEARCH​

* ‍OPERATIONS ARE SIGNIFICANTLY DIFFERENT TO THAT OF AFRICAN BANK​

* “‍IT IS PATENTLY UNTRUE THAT CAPITEC HAS FIRED ANY EMPLOYEES ‘FOR NOT DECEIVING BORROWERS”​ Source text for Eikon: Further company coverage:

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