but it also means that it is something of a one-trick pony. Investors need to make a call as to whether or not this particular circus has left town. Sure, transaction income has grown nicely due to the fact that it now has more than 5m customers. Capitec is aggressive on costs and doesn’t waste money on fril ls. For example, executives drive from branch to branch in a Toyota as they do their annual visits. Branches are about as inviting as a Formula 1 Hotel to a bridal couple on their wedding night, but it ’s the no-f ril l s approach that has made the group into the massive success story which investors have celebrated over more than a decade.
The reality is that the microlending story in SA has been ridden hard, and big lenders have aggressively cut back on their lending over the past 12 to 18 months. Personal finance website JustMoney.co.za says that it has seen a 23% increase in the number of unsecured personal loan applications over the past year, and that the demand for consumer credit is up year on