South African billionaire Michiel Le Roux, co-founder of Capitec Bank, is grappling with a significant decline in the market value of his stake in the leading retail bank.
Since the start of the year, the market value of Le Roux’s 11.41-percent stake has plummeted by a staggering R4.7 billion ($251 million) due to sustained selling pressures in the bank’s shares on the Johannesburg Stock Exchange.
Data tracked by Billionaires.Africa revealed that Le Roux’s holdings in Capitec Bank, which consist of 13,190,043 ordinary shares, have fallen from R24.51 billion ($1.31 billion) to R19.8 billion ($1.06 billion) as of the time of drafting this report.
This decline can be attributed to a 19.2-percent plunge in the bank’s shares since the start of the year, pushing its market capitalization below $9.3 billion.
Despite the decline in the market value of his stake in the bank, Le Roux remains one of the wealthiest businessmen in South Africa.
Capitec Bank, known for its large customer base, presently operates over 850 branches and more than 7,400 ATMs across South Africa.
Founded two decades ago by Le Roux and prominent businessmen Jannie Mouton and Riaan Stassen, the bank has established itself as one of the world’s most reputable retail banking brands, offering a wide range of transactional banking and loan products.
In its recently released financial results, Capitec Bank demonstrated remarkable resilience amid challenging circumstances, including military aggression in Ukraine, leading to a surge in energy and food prices.
The bank also successfully navigated the continuing uncertainty caused by load shedding, which significantly affected business confidence in South Africa.
Despite these obstacles, Capitec Bank reported an impressive 14-percent rise in profits. The bank’s earnings soared from R8.52 billion ($466.4 million) in 2022 to an impressive R9.7 billion ($531 million) by the conclusion of the 2023 fiscal year.
The substantial increase in earnings can be attributed to the bank’s exceptional performance in lending, investment, and insurance income.
Notably, these areas experienced significant growth, with income rising from R19.96 billion ($1.1 billion) to an impressive R24.17 billion ($1.32 billion).