Capitec: Viceroy'd!

[Eti1]

Based on our research and due diligence, we believe that Capitec is a loan shark with massively understated defaults masquerading as a community microfinance provider.We believe that the South African Reserve Bank & Minister of Finance*should immediately place Capitec into curatorship.
https://viceroyresearch.org/2018/01/30/capitec-a-wolf-in-sheeps-clothing/

 

[Sinbad]

How much credibility do Viceroy have? (I have no idea... )

 

[BBSA]

https://www.bloomberg.com/news/arti...epened-steinhoff-drop-finds-target-in-capitec

 

[Polymathic]

So Capitec uses the same predatory practices that other banks use I am shocked .

 

[creeper]

Based on our research and due diligence, we believe that Capitec is a loan shark with massively understated defaults masquerading as a community microfinance provider.We believe that the South African Reserve Bank & Minister of Finance*should immediately place Capitec into curatorship.
https://viceroyresearch.org/2018/01/30/capitec-a-wolf-in-sheeps-clothing/

This isn't anything new. Capitec started as a micro-lender, if I recall under PSG. It became a deposit taking bank to be able to increase lending.

 

[ShiiZZo]

I did a WHOIS for viceroyresearch.org, and it doesn't make sense. I believe the owners of the site are obfuscating their real identities (note: massive assumption).

*edit* nvm, just now opened the Bloomberg link.

 

[saturnz]

How much credibility do Viceroy have? (I have no idea... )

it does not really matter though

a bank with a PE ratio of close to 25 (at today's price) should be enough to ring alarm bells

 

[Wall]

What does this mean for the ordinary individual who has money with Capitec?

 

[supersunbird]

Viceroy is 3 people:

https://www.moneyweb.co.za/moneyweb-radio/revealing-the-men-behind-viceroy/

 

[Ho3n3r]

So, how much affiliation can one find between these 3 individuals, and the other big 4 banks?

BTW, I have no idea, but it seems like an obvious place to look...

 

[therealace]

They probably surfing on the grey areas around credit - if allegations are true I wonder who the auditors are for financials and impairments, ...

 

[supersunbird]

Well, Viceroy report is obviously useless if they say "masquerading as a community finance provider". Now if they had said "masquerading as a bank", they'd at least be factually correct. So what else did they get wrong?

 

[Nerfherder]

How much credibility do Viceroy have? (I have no idea... )

From what I understand they called out Steinhof before anyone else.

 

[supersunbird]

From what I understand they called out Steinhof before anyone else.

Only after CEO resigned. I predicted the lotto numbers after the draw happened...

 

[Cius]

Sounds like they dug up some ex Capitec employees and got some dirt on Capitec. They then found some information in the publicly released numbers that seem to verify what the employees said. Could be nothing, could be they are right. We don't have enough info to determine that yet.

However at the time ABL went down a lot of people said Capitec was the same as African bank and people should be careful and they managed to persuade the market they where different. Still, I wonder. The concerning things for me is that they share directors with Stienhoff. Time will tell I guess.