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@sextant_za fair point on the loan book, but do you think the margin compression from all this competition actually bites harder when rates start falling again. Cost to income looks good now but feels like a lagging indicator.
algos hammering it again, classic afternoon raid setup
@guppy_jse yep, patience looks like a real good idea here
Good Morning Everyone. CPI loan book growing faster than the big four managing right now.
@guppy_jse solid support there, looking good into tomorrow
@jozi_janet ngl that's the real risk hey
R4762.39, holding strong lol
Small biz lending uptick showing through, volume steady above usual range past few days
@jse_tttrading but what happens if load-shedding tanks small business lending further, hey?
Capitec's been grinding higher on the back of solid credit growth and that lower cost-to-income ratio, which frankly puts them ahead of the curve compared to what the big four are managing. At R4744.36 today you're not getting it cheap, but the loan book expansion into underserved segments is the real story here, not the daily noise. This is the kind of franchise that compounds quietly over five years.
Look at the loan book growth and npl ratios, this bank is built different. Yeah we're down from peaks but the fundamentals are actually tightening, margins holding while others are getting squeezed. If you can't see the value at R4744 with the dividend yield where it is, can't fix stupid.
CPI's net interest margin still holding up better than the rest of the banking crew even with rates where they are, and retail lending demand hasn't dried up like some feared. long-term view hasn't changed, markets are shaky but the fundamentals here are solid for a three to five year hold.
@momentumtracker_jse yep, retail funding moat is real
the deposit franchise they've built is genuinely different to absa and fnb, cheaper to fund on a per capita basis which buys them runway while the margin picture sorts itself. cost to income at 42 odd percent still looks decent relative to peers getting squeezed harder, so the multiple compression we've seen might be overdone if rates eventually normalize. positioned perfectly for a patient investor but k_maphosa's right, next year or two is probably sideways territory.
deposits aren't getting cheaper anytime soon, that's the real pressure. cost to income ratio is nice but margins are still getting squeezed from both sides, can't outrun that forever. retail banking edge only works if you're not paying deposit rates like the majors are forced to. next few quarters tough.