Is African Bank ready to fly yet?
- South Africa
African Bank, African Rainbow Capital, Capital adequacy ratio, Capitec, FinBond, Grindrod Bank, Impairment, Net interest income, Non-interest revenue, Return on equity, Tyme Bank
- October 7, 2020
Remember African Bank? If you watched any of President Ramaphosa’s lockdown speeches, you were definitely given a refresher. We don’t know what they paid for those ads, but it was probably the most valuable advertising space anywhere in South Africa at the time. Long before that, African Bank had been on an aggressive campaign, advertising at airports and all over …
Sasol’s assets nosedive in value, but what about a rights issue?
Sasol released a trading statement today that used the word “impairment” many times. That isn’t usually good news for shareholders, but Sasol was up over 4% regardless. Let’s unpack how that might be possible. What is an impairment? An impairment is an accounting entry that recognises a drop in the value of an asset. Auditors place a lot of focus …
Capitec: be afraid of what you cannot see
Back in March, Capitec suffered a price drop so severe that management released a SENS announcement to try and stop the bleeding. They highlighted that earnings growth still looked reasonable and that only 9% of Capitec’s customers have credit from the bank, so it isn’t the high-risk lender that the market sees it as. They also noted that the bank’s …