Capitec today announced that its prepaid mobile service Capitec Connect has issued 1.3 million SIM cards to subscribers by the end of August 2023.
The banking group launched its mobile virtual network operator (MVNO) in September 2022.
Capitec Connect piggybacks on Cell C’s mobile network infrastructure.
Capitec GlobalOne transaction accounts can become Capitec Connect subscribers by connecting to the mobile virtual network by purchasing a SIM card from Capitec, which has been provisioned and activated on the mobile network.
Meanwhile, Capitec also recorded headline earnings growth of 9% to R4.7 billion in its August 2023 Interim financial results.
The bank’s effective client acquisition strategies added close to 1 million new active clients in the past six months, bringing the total number of active clients to 21.1 million.
Gerrie Fourie, Chief Executive Officer at Capitec, says, “In an economic climate rife with financial challenges, Capitec’s latest results highlight our unwavering commitment to product diversification, underpinned by our investment and innovation to meet our clients’ dynamic needs. We are not just banking for today but shaping the future of banking in South Africa.”
Diligent loan management amid a turbulent financial environment
Capitec Retail’s gross loans and advances saw an uplift of 8% to R83.8 billion. The total credit impairment charge on retail loans and advances rose by 62%, as anticipated by the bank and in line with the industry, amounting to R4.6 billion. This nudged the credit loss ratio to 5.5%.
Fourie adds, “Our challenging economy invariably reduced our clients’ disposable income in this period. Our credit management remains agile and we proactively instilled stricter credit granting criteria and treatments for all our credit offerings, further tightening existing measures.”
