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Capitec earnings rise on record client growth

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Capitec CEO Gerrie Fourie. (Supplied)
Capitec CEO Gerrie Fourie. (Supplied)

Cape Town - Capitec Bank [JSE:CPI] announced on Tuesday that it achieved a record growth of 1.3 million new clients for the financial year to February 2017, with active clients totalling 8.6 million by year-end (February 2016: 7.3 million). The bank reported 18% growth in headline earnings to R3.8bn (2016: R3.2bn).

Primary banking clients (those clients who make regular deposits – mainly salaries) grew in line with total client growth and represent 46% of all active clients.

Net transaction fee income, driven by a combination of the growth in Capitec’s active client base, expansion of the ATM and branch network and strong take-up of cellphone banking, increased by 30% year-on-year (y/y). The net transaction fee income covered 72% (February 2016: 66%) of the bank’s operating expenses and contributed 37% (February 2016: 33%) of its net income.

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