Capitec Bank's headline earnings at R4.5 billion
Capitec's customer base has expanded, while its headline earnings have climbed 18 percent.
According to Capitec Bank’s most recent annual financial results for the year ending February 2018, the bank’s strategy to grow its active client base to nearly 10 million has proven successful: almost one-third of the employed adult population in South Africa currently bank with Capitec. Moreover, the bank has seen solid financial growth, with headline earnings up 18 percent, to R4.5 billion.
Other key indicators which showed strong growth include net transaction fee income (non-lending), which increased by 31 percent, to R5.1 billion (2017: R3.8 billion); total retail fixed savings, which increased by 28 percent, to R23 billion (2017: R18 million); and total retail call savings, which increased by 16 percent, to R35 billion for the current year.
Gerrie Fourie, Capitec CEO, says that the bank’s growth has proved to be sustainable as it tightly manages the risk and performance of its credit business. Fourie says:
“Since the start of the bank 18 years ago, we have remained true to our founding fundamentals and our vision to enable clients to improve their financial lives. As a result, the brand has become synonymous with simple and transparent banking and credit, which offers real value for money and is accessible to all South Africans.”
According to the CEO, Capitec clients are also benefiting greatly from the bank’s investment in technology. “More than 1.5 million clients are using our banking app on a regular basis, with 106 million transactions during 2017 – more than double compared to last year this time,” he says.