Trading Day – Capitec reports healthy growth in earnings

Capitec published its half-year results today, revealing healthy growth in earnings and a 12% increase in net asset value.

The bank has a liquidity coverage ratio (LCR) of 2,600% compared to the 100% requirement under Basel regulations.

Capitec declared an interim dividend of R14 per share, a 17% increase from last year.

In other news, Sappi agreed to sell three European Graphic Paper mills, and Motus directors dumped over R60 million in shares.

Here is the biggest news of the day.

• Capitec reports healthy growth in earnings. Earnings per share (EPS) for the half year ended in August grew by 19% to R40.35 while the net asset value increased 12% to R35.765 billion. The bank has a liquidity coverage ratio (LCR) of 2600% compared to the 100% requirement under Basel regulations. The company declared an interim dividend of R14 per share, a 17% increase from last year.

• Sappi agrees to sell three European Graphic Paper mills. The agreement with the European asset manager Aurelius Investment Lux One S.à.r.l. will see Sappi divesting from its Maastricht Mill in the Netherlands, its Stockstadt Mill in Germany and its Kirkniemi Mill in Finland. The consideration of €272 million consists of a combination of cash proceeds, receivables collection and retention of liabilities.

• Motus directors dump over R60 million in shares. The company was trading under a cautionary announcement since 28 June due to a potential deal to acquire an offshore aftermarket parts business. On 14 September, they withdrew the cautionary only to sell shares the next day. Motus CEO Osman Arbee sold around R21.6 million in shares, while Ockert Janse van Rensburg sold R11.8 million, Kerry Cassel sold R9.2 million, and Corne Venter sold R18.4 million.

• Impala Platinum acquires more shares in Royal Bafokeng Platinum. Implats has concluded agreements to acquire just over 1 million more RBPlat Shares constituting approximately 0.35% of the company. Following the acquisition, Impala will hold close to a 40.5% stake in RBPlatinum.

• Anglo American Platinum is launching a new employee share scheme. Permanent employees will each get AmPlat shares worth R8,000 a year.

• Bank of England (BoE) intervenes in the bond market following a record sell-off. UK gilt yields spiked and were on course for their sharpest monthly rise since 1957 as investors flee British fixed income investments in response to large unfunded tax cuts announced by Liz Truss. The BoE will suspend the planned start of its gilt selling next week and begin temporarily buying long-dated bonds in order to stabilize the market.

• Hurricane Ian hits Florida as a Category 4 hurricane. The hurricane sustained winds over 240 km/h making it one of the most powerful storms in recent history and leaving nearly 2 million homes and businesses without power. Ian collapsed Cuba’s electrical grid on Tuesday, leaving the entire island without power. A week prior, hurricane Fiona caused widespread destruction in Puerto Rico and the Dominican Republic.