Capitec Bank Earnings Skyrocket In 2022, Boosted By Digital Solutions

Capitec Bank
Capitec Bank

Capitec Bank reported today 84% growth in group headline earnings to R8.4 billion for the 2022 financial year, boosted by digital solutions.

The bank said it increased its active client base by 14% to 18.1 million, which translates to nearly 190 000 new clients per month.

Active digital banking clients (app, internet banking and USSD) grew by 17% to 10.1 million, of which 6.6 million clients use the banking app, up 25% since 2021.

Despite the challenges presented by COVID-19, several hard lockdowns and the civil unrest in KwaZulu-Natal and Gauteng, Capitec’s accessible product offering continues to resonate with all South Africans.

Mercantile Bank, a division of Capitec, also reported a growing client base with its total active business clients increasing by 10% to 125 270.

“During the past year, our agility and focus made it easy for the bank to quickly adapt to the new reality. We viewed the challenge as an opportunity to assist our clients and make banking uncomplicated and accessible to all,” Gerrie Fourie, Capitec Chief Executive Officer, said.

“Capitec’s digital solutions have been crucial in enabling this growth. In addition, our staff have been instrumental in this adoption and have excelled in this new, hybrid, digital world.”

As a result, Capitec continues a strong recruitment drive for technology and data skills, to accelerate the bank’s digital transformation even further. During the past year, 1 367 new employees were hired with 26% of new hires fulfilling critical IT and data business development needs. Despite the pandemic, the business continues to grow and invest in its people and has already started recruiting top talent to fill 500 new positions this year.

“We are also passionate about empowering and upskilling our staff through education, workshops and mentorship. This has resulted in 48% of our available positions being filled internally,” Fourie continues. “We reward our staff for living our fundamentals and driving client-centricity through personal service and digital solutions.”

South Africa’s best digital bank, according to the SITEisfaction® 2021 survey, saw an increase in digital innovations that make banking simpler and more intuitive as the key driver, with a 27% growth in digital transaction volumes. Clients’ transactional behaviour shifted away from cash towards digital channels, accelerated by the pandemic. Overall, net transaction income increased by 21% to R10.5-billion. Clients quickly adopt contactless card payments and online shopping.

Capitec will continue to innovate to add real value for clients and make banking simpler, as it has done in its two decades.

“Today, Capitec is South Africa’s best and biggest retail bank with over 18 million clients. Our aim? To challenge, disrupt and innovate, not just for innovation’s sake, but rather to continue meeting client needs. Now the bank grows as our clients do, with a future-fit roadmap designed for all South Africans. This means that we have some new developments on the horizon. After 22 years of building what is now a fully-fledged bank, for us, the job is not over yet. It has only just begun,” Fourie concludes.

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