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South Africa’s Capitec Bank expects 70% plunge in H1 profit due to bad loans

(Reuters) – Capitec Bank said on Friday it expected first-half earnings to plunge by 70% due to a spike in bad loans in the wake of the coronavirus pandemic, becoming the first major South African lender to spell out an exact hit to profit from the crisis.

It expects headline earnings per share to fall by more than 1,782 cents, compared to the 2,545 cents reported for the six months ended Aug. 31, 2019.

(Reporting by Muvija M in Bengaluru; Editing by Susan Fenton)

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