Capitec grows earnings 25%
posted a rise in earnings of 25% over the period under review, reports Fin24
. This brings earnings to R1 47 billion, from R1.2 billion for the same period last year.
The bank has managed to achieve this in spite of “difficult market conditions and a tough economic environment,” adds Fin24
Lower cost banking appears to be appealing to consumers in these cash strapped times.
Capitec added nearly 1 million new clients, says IOL
. This brings its total active customer base to 6.7 million.
The bank provides unsecured lending, but has diversified its product base “to boost customer transactions and increase fee income,” reports Bloomberg
. This is reducing its reliance on lending.
Capitec shares have outperformed the JSE All Share Index
As Capitec continues to grow its customer base, “adding up to 80,000 clients each month,” its shares are also performing well, notes 702
. They’re 42% higher this year, “despite weakness of the All Share Index”.
You can see how the share has performed over the past year on the chart below…
Gerrie Fourie, the CEO of the bank, says their “focus on building relationships and supporting clients to better manage their finances” is helping them to lure younger people, “in both high and low income categories,” adds Fin24
As customers seek a more cost effective banking solution, Capitec’s “opened 23 new branches and installed 228 new ATMs” in the period under review, notes IOL
. This brings its total ATMs to nearly 700.
Capitec’s goal to provide more affordable banking to its customers appears to be paying off.
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