CAPITEC BANK: I am proud of your level of financial disclosure

Dear Africa interested individuals:
                                                        Capitec Bank's February 2015 annual report was a joy to review.  I am a big supporter of detailed corporate financial disclosure as you might already know.  If any bank CEO wants to know how to put together a transparent, detailed, free flowing, explanatory integrated annual report, kindly go to the website of Capitec Bank and review their annual report for FY 2015.  Reports like that make my work as an Africa analyst a lot easier in so many ways I cannot fully explain.  

So many companies will state capital expenditure without stating whether it is for replacement or addition.  This is important information as far as I am concerned.  A company sells multiple SKUs but will not break down sales by SKU so that we can know how each SKU is performing as it relates to the bigger picture.  Banks will not state their top 10 biggest loans, to whom it was extended to, interest rate and performance of the loan.  As Shakespeare said "to know you is to love you."  Investors should not flock to companies that will rather tell you what they want and not what you want.  There is an intersection, but, it is not wide enough.  

SCB Ghana acknowledged the difference in their non-performing loans (NPL) ratio based on IFRS (simply looks at loans as performing or non-performing or you can say black or white) and prudential guidelines of the Central Bank of Ghana which follows a provisioning template which is more cautionary in nature.  IFRS as expected, made the asset quality of SCB Ghana a lot better than if assessed from a prudential guidelines standpoint.  I am impressed that the bank stated the two varying  NPLs within its Management Discussion & Analysis.  I did not have to scour the crevices and alleys of the notes to determine if the information was publicly revealed or not in the annual report.

There is still a lot of work that needs to be done by African companies that will tell the world that they now understand that detailed information provision is a right of analysts and shareholders and not a privilege.  Some companies are way ahead of others.  Capitec Bank do not look backward, keep moving forward with your impressive disclosure.  I am behind you as your lights continue to shine brightly.  You are hereby positively acknowledged.         


Comments

Post a Comment

Popular posts from this blog

Unemployment rate in Nigeria: Playing with figures

Dear Africa interested individuals:                                                         There are three major macroeconomic indicators globally: GDP/GDP growth, inflation (CPI) and unemployment rate.  Whenever a country's number is called, these are typically the first three indicators that are looked at before other indicators like balance of payments etc.  Nigeria's unemployment rate computation methodology was recently revised.  Before now, anybody employed must work for at least forty (40) hours before they are considered employed.  Any individual who works less than forty (40) hours is deemed to be unemployed as the natural assumption is that an individual's inability to work a forty h...
Read more

The clamor for continued devaluation of African currencies reeks more and more of selfish interests

Dear Africa Interested Individuals:                                                         The clamor continues for commodities export dependent (especially oil) economies to further devalue their currencies.  I keep asking myself "when is enough finally enough?"  The clamor is largely driven by global economists across the spectrum loyal to economic theory and the countries they are domiciled in, portfolio managers and large commercial banks in the countries of focus with net positive (more dollar inflows expected than dollar outflows) dollar exposures.   What does devaluation do to the people in the countries that have devalued their currencies multiple times (or one devaluation of 20% or mor...
Read more

How to suppress dollar demand in Nigeria: A quick introspection

Dear Africa interested individuals:                                                              Dollar demand continues to rise in Nigeria where Naira is the official currency.  How can Nigeria suppress the demand for dollar and quickly?  It should be clear by now to all that the Naira has limited use because most of the things Nigerians desire must be manufactured outside Nigeria for the product to be considered real and worthy of purchase by consumers in Africa's most populated country. This widely held purchasing character of the Nigerian consumer, has led to a continuous and ever increasing demand for the dollar by manufacturers, to purchase raw materials and finished goods for an ever increasing population.  This leads me into the probable solutions necessary to reduce dollar demand by Nigerians. 1....
Read more