Capitec Bank sees recovery in the second quarter results, ending August

Capitec’s operating profits and headline earnings were heavily impacted by Covid-19 in the first quarter.

Capitec Bank’s operating profit declined 86 percent from R3.83 billion to R538 million for the six months ended August due to the impact of Covid-19. The bank also reported a headline earnings loss of R404 million in the first quarter of the reporting period.

Despite the effects of Covid-19, Capitec saw a sharp recovery in the second quarter of the reporting period as the economy started opening up again after lockdown. The group’s headline earnings grew over R1 billion.

As the economy opened up again, Capitec’s client income levels recovered to what they had been before lockdown, and active retail banking clients grew by 784,000 to 14.6 million.

Capitec CEO Gerrie Fourie said one of the noticeable things about Covid-19 was how it sped up the country’s digital transformation. He explained that this could clearly be seen in how the bank’s clients have increasingly used its mobile app to transact. “Our active clients have grown 38 percent to over 4 million and our new app is the most downloaded app on all major South African app stores.”

The bank’s app, internet and USSD transactions collectively grew 52 percent to R556 million.

“Capitec met the challenges of Covid-19 with the agility born from our fundamental principles,” Gerrie said. “During this time, we have been able to provide relief to clients, ensure the job security of our employees and implement strategies that safeguard the future of Capitec.”