Capitec Bank rewards shareholders with an interim dividend of 1,400 cents a share for the six months to end-August 2022, as the bank signs up 165 000 new customers a month for the past year.
The bank informed investors today that directors resolved that a gross interim dividend of 1,400 cents per ordinary share be declared for the 6 months ended 31 August 2022 versus 1,200 cents a share on 31 August 2021. There are 116 099 843 ordinary shares in issue.
The banking group added that on average, over 165 000 new clients have joined the bank every month in the past year.
Its active client base increased by 13% to 19 million and digital banking clients that bank on the app, internet banking and USSD increased by 21% to 10.8 million – now representing 57% of its total active clients.
“The year has not been an easy one for our country and the South African consumer took considerable strain in this period due to inflationary pressure, higher interest rates and record-high fuel prices,” Gerrie Fourie, chief executive officer at Capitec, says.
“Over the last five financial years, we have seen consistent growth despite this, demonstrating the underlying resilience of our country, our business and our clients. This has been a testament to each of our employees, who have never been deterred by opposition and have always seen it as an opportunity to take ownership and deliver solutions.”
Capitec added that operating profit before tax and credit impairments grew by 24% to R8.8 billion, compared to R7.1 billion a year ago. Lending income grew by 13% to R8.0 billion and net credit life insurance and funeral plan income grew by 64% to R1.5 billion.
The net transaction, net foreign currency and funeral plan income to operating expenses ratio improved from 98% in August 2021 to 108% in the current year.
Net credit life insurance income grew by 60% due to growth in active policies and a reduction in claims paid. Funeral plan income grew by 72% based on growth in the active policy book, growth in average premiums and lower claims.
The road to Capitec Business Bank
Business bank grew by 60%, contributed R201 million to group earnings for the period (August 2021: R126 million).
“Our vision is to provide personalised digital business banking in a scalable way to help entrepreneurs and SMEs grow. As a result, total clients, including POS merchants, grew by 14% to 142 185 during the current period. We are on track to rebrand Mercantile to Capitec Business early in the next financial year,” Fourie adds. “We want them to experience the same unique simplicity, affordability and personalised service offered by our Global One offering.”