Capitec forecasts jump in full-year profit

Capitec Bank flags a rise in annual profit of up to 27 percent, surpassing market expectations.

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Johannesburg - South African lender Capitec Bank flagged a rise in annual profit of up to 27 percent on Monday, surpassing market expectations and sending its shares higher.

The provider of non-asset backed loans, said headline earnings per shares (EPS) would likely be up 27 percent at most, above an estimated growth of 21.7 percent in a Reuters poll of eight analysts.

Headline EPS is South Africa's main gauge of profit that strips off certain one-off items.

Shares in the company rose 3 percent to R510.49, erasing earlier losses after dropping to as a low of R478.38.

Capitec Bank, with a lending book around R35 billion, makes two-thirds of its revenue from lending activities.

The company will publish its results on March 30.

REUTERS