Discovery Bank, a part of Adrian Gore’s Discovery Group, achieved its medium-term goal of adding 1,000 new clients daily in January to June 2023, a 50% increase from the prior year.
The bank’s total client base exceeded 700,000 by June 2023, making significant progress toward its 2026 target of one million clients.
Discovery Bank saw steady growth in advances, driven by a 56% increase in credit applications and higher card usage.
Its share of new credit issued for credit card facilities rose to 15.7% in Q2 2023, up from 10.9% the previous year.
Despite a challenging macroeconomic environment, Discovery Bank maintained a quality-focused credit strategy with a credit loss ratio within long-term targets.
Total customer deposits increased to R14.3 billion from R10.9 billion.
Discovery Group continues to invest in product innovation and digital capabilities to integrate the bank into the broader Discovery retail ecosystem.
Discovery Bank’s operating loss improved by 23% compared to the previous year, and the operating loss before new business acquisition costs improved by 39%.
Operational enhancements focused on improving collections amid ongoing macroeconomic challenges.
The bank’s non-interest revenue grew strongly, driven by increased interchange and fee income per client, higher upgrades, and increased transactions, debit orders, and salary deposits.
Clients’ utilisation of Discovery Bank’s transaction capabilities also increased significantly, with total payments up 56% by value and total spend up by 48%.
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