Capitec is adding 106,000 new clients per month as earnings climb
Banking group Capitec says it has recorded client growth of 106,000 per month over the last 12 months to 9.2 million customers, from 7.9 million in 2016.
The company on Wednesday published unaudited financial results for the six months ended August 2017, showing a 17% growth in earnings.
- Headline earnings per share up 17% to R17.69
- Headline earnings up 17% to R2.046 billion
- Interim dividend per share: 525 cents
- Return on equity: 26%
- Active clients: 9.2 million
- New jobs created this period: 463
“By the end of August 2017, we had 9.2 million active clients and increased our number of branches to 811. This represents client growth of 106,000 per month over the last 12 months,” Capitec said, making it the second largest bank behind Standard Bank.
Capitec said that self-service banking transactions (cellphone banking app, internet banking, self-service terminals and dual note recyclers) increased by 43%.
Net lending and investment income increased with 10% despite introducing our improved credit solution and applying a stricter granting strategy. Arrears and rescheduled loans decreased with 14% while the net loan impairment expense increased with 8%.
“Net transaction fee income increased by 29% and operating expenses increased 20% from the prior year period in support of our growth initiatives,” it said.
Capitec said that operating costs increased by 20% from R2.6 billion to R3.2 billion in the current period. “The main reason for the increase in costs relate to the increase in employees, increased salary incentives (due to a 55% increase in our share price), information technology and marketing expenditure to ensure our growth aspirations are appropriately supported,” it said.
The bank said that 15 new branches were opened during the current period compared to 31 during the prior year period, driven by the focus on self-service banking. This resulted in a decrease in capital expenditure of 34%.
“The increase in self-service banking transaction volume of 231 million this period compared to 162 million of the prior year period has contributed to 95% of our clients
now waiting less than 15 minutes in a branch to be served,” Capitec said.
Latest retail customer numbers
| Bank | June 2016 | December 2016 | June 2017 | Y/Y change |
|---|---|---|---|---|
| Standard Bank (Accounts)* | 10.9 million | 10.7 million | 10.6 million | -300 000 |
| Capitec | 7.9 million | 8.3 million | 9.0 million | +1 100 000 |
| Absa Bank | 8.9 million | 8.8 million | 8.65 million | -250 000 |
| FNB | 7.4 million | 7.7 million | 7.8 million | +350 000 |
| Nedbank | 7.7 million | 7.4 million | 7.8 million | +100 000 |
* Excluding uCount
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