Capitec released its first half of its 2024 financial year and noted that it had an incredibly strong performance, making around R2.5 billion in profit before tax.
The low cost bank said that its operating profit before tax increased by 41% to R8.309 billion, from R5.893 billion in the comparative period.
Capitec said that it’s headline earnings per share increased by 36%, and said it had a return on equity nearing 30%.
The bank said that it has now reached 23.2 million active clients and this included point-of-sale merchants.
According to their performance statement, Capitec’s total equity increased by 17% to R45.958 billion, from R39.353 billion in the comparative period.
Capitec CEO Gerrie Fourie said that the Bank’s incredibly strong performance was a direct result of their diversified business model.
“We have continued to invest significantly since 2020, despite the tough economy, and have developed solutions that meet the needs of our clients,” he said.
Capitec also noted that its interest income surged by 72% to R5.6 billion after credit impairments, which drove the company’s strong performance.
Market Cap
Capitec has a market cap of R336 billion and said it had plans to further disrupt the business banking landscape with new low-cost packaging of its point of sale card machine sales.
The bank is targeting growth of its business banking division, predominantly via the small, medium enterprise sector (SME).
Capitec said it’s upping its game by launching a through-the-line campaign on September 1 by launching three card machine packages with no hidden costs.
The move comes as Capitec strategically expands its business banking footprint. Earlier this year, the bank implemented a new online banking platform, moved to a single Capitec app for business and personal banking, and implemented cloud-based banking, CRM and lending solutions.
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