We are reviewing the report in detail and will respond to it in detail later today.
Capitec Bank today, 30 January 2018, strongly denied allegations made by U.S. researcher Viceroy that claims it had compiled evidence suggesting the company must take significant impairments to its loans.
He also welcomed Sarb's assurance that according to all the information at its disposal, Capitec is solvent, well capitalised, has adequate liquidity and meets all prudential requirements.
Shares in Capitec Holdings dropped as much as 25 percent after USA firm Viceroy Research said the South African lender overstates its financial assets and income, claims which the bank rejected.
"As part of our mandate, we monitor the safety and soundness of all banks, including Capitec Bank. We believe that the South African Reserve Bank and Minister of Finance should immediately place Capitec into curatorship".
"Viceroy's extensive due diligence and compiled evidence suggests that indicates Capitec must take significant impairments to its loans which will likely result in a net-liability position".
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The South Africa Reserve Bank, which regulates lenders in Africa's most industrialised economy, rallied behind Capitec, saying the company's financial health was intact.
- "As a outcome of re-financing delinquent loans‚ Viceroy believes Capitec's loan book is massively overstated".
"Not only is Capitec's market finding it harder to pay their existing loans on time, but they may not be able or willing to incur further loans in the future".
Viceroy, which did not disclose if it would profit from the Capitec stock price fall, said the company overstates its loan book by as much 3 billion rand a year by issuing new loans to defaulting clients.
"Capitec received a copy of the Viceroy research report on Capitec at 10 am this morning".
It's business as usual at the Capitec Bank branch in Campus Square in Melville, Johannesburg - despite Viceroy Research's accusations that the bank is embroiled in underhanded business practices.