Tito’s shocker less of a shocker for Capitec
Of the listed JSE banks, which would you regard as having a lower risk profile, ABSA or Capitec? The first of the two is one of the big four, safe as houses you’d reckon, too big to fail. The second is a lowly micro-loan outfit. No contest, right, in a COVID-19 South Africa? In a Trader entitled “Tito’s shocker less of a shocker for Capitec” Ingham Analytics have what they say is a counter intuitive view on this. The supplementary budget this week they say weights banks’ risk further to upside. Banks hold heaps of government debt, due to liquidity requirements. So, what are the pros and cons on Capitec that make it a bit different to FirstRand, Standard, ABSA and Nedbank? And what are the price to book ratios of the five right now? Ingham Analytics are going to be doing an overdue update on Capitec but meantime they have some intriguing pointers to consider if you’re keen on having some stake in the banking sector.
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