Simple, smart and profitable

Any cricketer will have come across the old theory that form is temporary, class is permanent. But it’s when you have a class player in top form that things really start to happen, and this is very much the case at Capitec Bank.

The bank has pulled out an absolutely stellar year, with headline earnings per share up 84%, all key metrics moving swiftly in the right direction and dividends flying around so thick and fast that it’s definitely trebles all round for the shareholders.

The messaging behind the numbers has remained remarkably consistent over the years. The bank is customer centric and focused on offering simple, innovative solutions that meet its clients’ needs rather than a whole load of bells and whistles that add no value at all.

This may not be rocket science, but it has proved remarkably effective, generating a compound annual growth rate of 17% in headline earnings over the past five years and 23% in the past 10, despite a generally moribund economy and all the disruption of the pandemic.

Despite being a mere 22 years old, Capitec has grown to the extent that CEO Gerrie Fourie can safely describe it as “SA’s best and biggest retail bank”, with its number of active clients growing 14% in the year to 18.1-million.

It continues to integrate its

2019 acquisition, Mercantile Bank, now rebranded Capitec Business, and the aim is to shake up the business banking sector in the same way as the retail sector by offering simplicity, affordability and service.

It’s been a remarkable ride so far, and rivals won’t enjoy Fourie saying “the job is not over yet”.

The messaging behind the numbers has remained remarkably consistent