Capitec reports 23% earnings rise as client base surpasses 26-million

The Stellenbosch-based bank's headline earnings reached R16.8-billion in the year to February, driven by loan disbursement growth.

Capitec Bank Holdings reported a 23% increase in headline earnings to R16.8-billion for the year ending February, up from R13.7-billion the previous year, as its active client base grew to more than 26-million.¹ Headline earnings per share rose 23% to R146.06.¹

Operating profit before tax increased 25% to R22.18-billion, while net interest income climbed 19% to R24.1-billion.¹ Interest income on lending grew 14%, supported by a 27% rise in personal banking loan disbursements and a 48% increase in business banking loan disbursements.¹

Total loan disbursements across the group expanded 34% to R98.3-billion.¹ The bank attributed the growth to data analytics informing targeted offers in personal banking and scored lending driving business banking expansion.¹ We are approving more because we know our clients better, not because we have lowered the bar, the group stated.¹

Capitec's total active personal banking clients increased 7% to 25.2-million.¹ Fully banked clients grew 12% to 9.9-million, representing 39% of the bank's active client base compared to 37% previously.¹

The Stellenbosch-based group declared a final dividend of R53.60 per share, bringing the total dividend to R79.80, a 23% increase from the prior year.¹

The bank described its performance as sustained momentum. We are not a growth story that has peaked. We are still building, it said.¹

In the short term, Capitec plans to focus on expanding its payments ecosystem and embedded financial solutions.¹ Medium-term growth initiatives were referenced but not detailed in the announcement.¹