Capitec shareholders will receive a R5.25 interim dividend, 17% higher than the matching period’s R4.50.
The banking group reported on Wednesday morning that total lending and investment income for the six months to end-August grew 12% to R8.4bn. Attributable earnings to shareholders grew 17% to R2bn.
Capitec grew its active account holder numbers by 16.5% to 9.2-million at the end of August from 7.9-million the previous year.
Its number of branches grew to 811 from 751 over the year.
A key selling point of Capitec is that its normal bank accounts pay interest on positive balances while its competitors have forced their clients to juggle their salaries between transaction and savings accounts. The attraction of this to customers is indicated by Capitec’s deposit growth averaging R1bn a month over the past year.
"Our continued brand acceptance growth resulted in a 28.7% increase in retail deposits to R55.4bn by the end of August 2017 from R43bn in August 2016," Capitec said.
Capitec, which started out by focusing on drawing blue-collar workers away from SA’s incumbent big four banks, has moved into the higher income earner market by offering credit cards and longer-term loans.
Its credit card loan book grew to R1.3bn at the end of the reporting period, and its longer-term loans with up to seven-year repayment periods grew to R1.2bn.
"We have reduced our monthly fee on our credit card, which will apply to all existing and new clients. There is no charge on any foreign exchange conversion cost when travelling overseas. The credit card is fully integrated into the Global One solution, earning interest of at least 5.1% on a positive balance," Capitec said in its results statement.
The group improved the percentage of loans where customers have kept their repayment records clean to 82.1% from 78.7%, while loans in arrears fell to 5.4% from 6%. Rescheduled loans fell to 2.3% from 3.6%.
Highlights of the year listed in the interim results included winning the "best bank in the world" award in the Lafferty Group’s annual bank quality ratings survey for the second consecutive year.
BDLIVE SA
The banking group reported on Wednesday morning that total lending and investment income for the six months to end-August grew 12% to R8.4bn. Attributable earnings to shareholders grew 17% to R2bn.
Capitec grew its active account holder numbers by 16.5% to 9.2-million at the end of August from 7.9-million the previous year.
Its number of branches grew to 811 from 751 over the year.
A key selling point of Capitec is that its normal bank accounts pay interest on positive balances while its competitors have forced their clients to juggle their salaries between transaction and savings accounts. The attraction of this to customers is indicated by Capitec’s deposit growth averaging R1bn a month over the past year.
"Our continued brand acceptance growth resulted in a 28.7% increase in retail deposits to R55.4bn by the end of August 2017 from R43bn in August 2016," Capitec said.
Capitec, which started out by focusing on drawing blue-collar workers away from SA’s incumbent big four banks, has moved into the higher income earner market by offering credit cards and longer-term loans.
Its credit card loan book grew to R1.3bn at the end of the reporting period, and its longer-term loans with up to seven-year repayment periods grew to R1.2bn.
"We have reduced our monthly fee on our credit card, which will apply to all existing and new clients. There is no charge on any foreign exchange conversion cost when travelling overseas. The credit card is fully integrated into the Global One solution, earning interest of at least 5.1% on a positive balance," Capitec said in its results statement.
The group improved the percentage of loans where customers have kept their repayment records clean to 82.1% from 78.7%, while loans in arrears fell to 5.4% from 6%. Rescheduled loans fell to 2.3% from 3.6%.
Highlights of the year listed in the interim results included winning the "best bank in the world" award in the Lafferty Group’s annual bank quality ratings survey for the second consecutive year.
BDLIVE SA
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