"Capitec: A wolf in sheep's clothing" was the name of the Viceroy Research report released on Tuesday about Capitec Bank, which claims the bank is a "loan shark with massively understated defaults masquerading as a community microfinance provider".
Capitec's share price over the past 6 months. Falling today in high volumes post Viceroy report. pic.twitter.com/qmimBcTL6a— Renee Bonorchis (@Reneebon) January 30, 2018
The report also urged the South African Reserve Bank and the minister of finance to place Capitec under curatorship.
Capitec has responded that it will investigate the report. The allegations come after Capitec supposedly outperformed "all major commercial banks globally" while targeting low-income earners.
We have taken note of the Viceroy report on Capitec Bank. We are currently in the process of investigating the report in detail and will respond appropriately.— Capitec Bank (@CapitecBankSA) January 30, 2018
Worried South African Capitec clients took to Twitter to ask what was happening and express their worries about their finances:
Worried now. Should we withdraw our money?— 💖 (@This_is_Zands) January 30, 2018
Are we going to see another #Steinhoff saga? Is our money safe? That should be the point of departure maqabane imali zethu kuqala— Veve (@LudidiVelani) January 30, 2018
If Capitec collapse alot of people will suffer bcz the so called old big players cant give us what we want in the name of affordability while you know you can afford to pay them back.— Donald (@ddmhlanga1) January 30, 2018
You have been very good since I joined you your charges are very good the big four are starting to feel your presence.— Lenin Sikhau (@LSikhau) January 30, 2018
Don't worry @CapitecBankSA that's what they do please clear your name ASAP I will remain "Capitecor" no doubt about it and there's no one even competing with Capitec. So I put my money where my mouth is and my money is on Capitec. Back your boy Capitec come on.— SOWETAN (@nkutha1) January 30, 2018
Or gives out insecure loans which is essentially what led to economic crisis. Capitec is heading for liquidation without intervention. It's a corporate fraud.— Andreu (@zebalon_CULE) January 30, 2018
Your smear campaign about Capitec will not stand in South Africa. This time keep your research in US amd for the US people, we In South Africa love #Capitec that is why they have been winning awards the past two years.#Capitec#Smearcampaign— Shalom Nchabeleng (@mmashalo) January 30, 2018
After reading the report on #Capitec I can safely tell you that users have nothing to worry about. That report even though exposes capitec it is also made to destroy it.— ZacIssaSavage (@Isaac_Moselane) January 30, 2018
The only reason why they want to destroy capitec is because it is out performing the old banks. Mona fela!!
Viceroy report is littered with "Viceroy believes" "assumption" "estimate" "appears to" "point towards" "must be" and so on. Not a piece of research credible enough to drive down a company's share price by 25%. #Capitec— Karin Richards (@Richards_Karin) January 30, 2018
Is it a coincidence that Capitec's share price was down 8% yesterday (before the Viceroy report)? Me thinks not. And they say insider trading is a fallacy né. Again, the JSE is caught sleeping 😴😴😴💤💤 #Capitec #Viceroy— Ray Mahlaka (@RayMahlaka) January 30, 2018
Capitec being under fire for being an undercover loan shark. This bank scandals keep on coming.#Capitec— The Gifted (@DebbieBloodmoon) January 30, 2018