SA’S CAPITEC REPORTS 19 PERCENT PROFIT INCREASE

SOUTH AFRICAN lender Capitec reported strong annual profit growth of 19 percent, but has decided against paying out to shareholders amid the COVID-10 crisis.

In a statement, the company said: “After extensive deliberation, the board decided to support the guidance of the Reserve Bank and decided against the declaration of the final ordinary dividend.”

Capitec would ordinarily pay out 40 percent of its profits to shareholders, the bank now South Africa’s sixth largest in terms of assets following a year of growth. The decision to scrap dividend payouts follows advice from the South African Reserve Bank.