Table of Contents
Key Points
- Michiel Le Roux's Capitec stake has lost $164.54 million in value due to a 7.42% drop in shares this year.
- Capitec’s market value decreased to $18 billion, reflecting broader market challenges and a 7.42% decline in shares over the past month.
- Despite the downturn, Capitec's solid foundation and broad network position it for potential growth amid market volatility.
South African billionaire Michiel Le Roux has seen the value of his stake in Capitec Bank take a significant hit this year, following a drop in the bank's share price on the Johannesburg Stock Exchange (JSE).
Le Roux, who holds an 11.36 percent stake in Capitec, has watched the value of his holdings fall by R3.07 billion ($164.54 million) since January. This decline has reduced the market value of his stake to $2.05 billion as the bank contends with broader market challenges.
The drop marks a shift from the gains Le Roux saw in 2024, when the value of his Capitec stake climbed above $2 billion. The recent downturn, however, reflects a combination of profit-taking and the broader market volatility that is affecting shareholders across the board.
Capitec Bank navigating challenges
Capitec Bank, co-founded by Michiel Le Roux alongside Jannie Mouton and Riaan Stassen, has established itself as one of the world’s leading retail banking brands over the past two decades.
The bank boasts a network of more than 850 branches and 7,400 ATMs across South Africa. Le Roux currently holds an 11.36 percent stake in Capitec Bank, amounting to 13,193,193 shares.
The leading retail banking giant recently faced sanctions from the South African Reserve Bank (SARB), which imposed a R56.25 million ($2.97 million) fine for breaching provisions of the Financial Intelligence Centre Act (FIC Act).
Despite the penalties, Capitec has demonstrated cooperation by implementing remedial measures to address compliance deficiencies and strengthen its anti-money laundering (AML) framework, underscoring its commitment to regulatory standards.
Over the past 26 days, Capitec Bank’s shares on the JSE have dropped by 7.42 percent, falling from R3,134.34 ($168.19) on January 1 to R2,901.92 ($155.72). This decline has reduced the bank’s market value to $18 million, causing notable losses for shareholders.
Capitec shares slide amid market volatility
The drop has hit Le Roux hard, with his stake in Capitec losing R3.07 billion ($164.54 million) in value since the year began. His stake fell from R41.35 billion ($2.22 billion) on Jan. 1 to R38.29 billion ($2.05 billion), mirroring the broader pressure on the bank’s shares.
Capitec remains a key player in South Africa’s retail banking sector and is eyeing global expansion. While market volatility poses risks, the bank’s solid foundation, widespread branch network, and focus on improving regulatory compliance could help it weather these challenges and position itself for sustainable growth in an increasingly competitive financial environment.
