Viceroy report into Capitec an attempt to downgrade SA banking sector - Sanco

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The US-based research organisation also produced the report that blew the lid on the accounting fraud at Steinhoff previous year. We strongly refute these allegations and are in the process of gathering information to respond to the claims made in the report with facts.

Viceroy, which describes itself on its website as "a group of individuals that see the world differently", came to prominence in December when it questioned the finances of Steinhoff, the South African multinational retailer which later revealed it had "accounting irregularities". According to all the information available, Capitec is solvent, well capitalised and has adequate liquidity.

"We believe that the South African Reserve Bank & Minister of Finance should immediately place Capitec into curatorship".

"Capitec received a copy of the Viceroy research report on Capitec at 10 am this morning".

Capitec Bank today, 30 January 2018, strongly denied allegations made by USA researcher Viceroy that claims it had compiled evidence suggesting the company must take significant impairments to its loans.

The research group further states that there's no operational difference between Capitec and the likes of African Bank, which went under due to reckless lending.

Capitec has since released a statement saying it had not been approached by Viceroy for insight into its business or to discuss, test or verify the allegations with the bank's management.

"As a outcome of re-financing delinquent loans, Viceroy believes Capitec's loan book is massively overstated", said Viceroy, which wrote a similarly damning report about Steinhoff before accounting irregularities were revealed at the retail company last December. "Viceroy's analysis against competitors suggests an impairment/write-off impact of R11bn will more accurately represent the delinquencies and risk in Capitec's portfolio".