Capitec bullish as company profits and customers increase
Capitec is the best-performing bank stock in South Africa at present. The small financial institution, based in Stellenbosch, has gained 40% compared to the average decline of 4.5% on the six-member FTSE/JSE Africa Banks Index.
The company said in a statement:
"Despite an unsupportive economic environment, we are bullish on retail banking and see opportunities to grow our client base and product offering. We are cautious on credit but remain optimistic that we can grow our loan book in a prudent manner."
- In 2014 CFO South Africa interviewed Capitec CFO and co-founder Andre Du Plessis. Read the full interview here.
Capitec has seen a 25% increase in fiscal first-half profit. The company opened several new branches in recent months, and has also taken on more than half a million new customers this year - 576,000 to be exact. In a bid to lure more middle- to higher-income clients, it plans to offer credit cards from next year onwards.
According to a company statement, net income in the six months through August climbed from R1.17 billion in 2014 to R1.47 billion in 2015. Earnings per share (excluding one-time items) rose 25% to R12.71, and the company increased its dividend by 52%, to R3.75 per share.