Capitec grows clients, posts 18% profit increase

CAPITEC, the country’s thirdlargest bank, recorded steady growth in the year to the end of February, lifting headline earnings by 18% to R3.8 billion and adding on 1.3 million new clients, bringing the number of active clients to 8.6 million.

The bank said headline earnings per share had increased by 18%, to R32.81, during the year as it continued to expand its branch, ATM and digital footprint.

Capitec said there was plenty of evidence of financial stress on customers during the year, with a significant increase in debt review applications and retrenchment letters received.

“There was also an increase in clients who received their salaries late or experienced reduced or no inflows,” the bank said.

The Capitec credit card was launched in September last year. So far, the bank said, it had performed within its “risk appetite”.

Capitec’s expansion beyond South Africa came after the end of the reporting period. The company announced this month that it was acquiring a 40% interest in Cream Finance, a multinational online technology-driven consumer loans company.

A final dividend of 800 cents per share was declared, bringing the total dividend for the year to R12.50 per share, up from R10.55 the year before. – ANA