Capitec Bank, which offers consumer banking services and provides loans not backed by assets to low-income earners, recently announced that profit in the year through February increased by 26%.
According to the lender, which is based in Stellenbosch, Cape Town, the improved profit is due to the addition of some 1 million new active clients as well as an increase in loan and transaction fee incomes. Net income rose to R3.2 billion, up from R2.5 billion a year earlier, while basic earnings per share increased to R27.79. The bank declared a final dividend per share of R6.80 a share.
As the South African economy slows due to rising inflation and interest rates, Capitec has maintained focus on boosting customer transactions and increasing fee incomes while simultaneously expanding its presence in the country and trying to attract more clients.
Capitec said in a statement:
"We expect difficult economic conditions to persist. We see this as an opportunity to gain more clients as they look for value."