Capitec sees colossal airtime purchase growth

Capitec Bank Holdings has pointed to huge growth in the purchase of airtime and electricity by mobile phone in delivering its financial results for the year ended February 2013.

“We have experienced dramatic growth in the purchase of airtime and electricity by cell phone. Last December six million such purchases were made compared to 673,000 a year ago.

“In the same period, balance enquiries went up from 271,000 to 3.5 million. In future, the cell phone will be an integral part of banking,” the financial services group said.

On Wednesday (27 March), Capitec noted that in the last twelve months its earnings increased by 47% to R1.584 billion.

“We raised R2.2 billion in new share capital through a rights issue but still managed a return of 27% on equity.”

Headline earnings per share was up 35% to 1 519 cents, while the bank’s directors declared a final dividend of 405 cents per ordinary share on 25 March 2013, taking the total dividends for the year to 574 cents per share.

Capitec also underlined growth in its active clients to 4.7 million, up 26% with 971,000 new clients over the past year.

“We have 560 branches and have opened on average 50 branches per year for the last three years. We intend opening 75 new branches in the coming year, having increased our capacity to train new employees,” the bank said.

Capitec said its ATM network has grown to 2,554 ATMs, and the number of ATMs that are independent of branches also continued to grow.

During the year Capitec introduced cash recyclers that utilise the cash deposited by one client in order to provide cash withdrawals to other clients.

“We had 8,308 permanent employees at year-end and we created 1,114 new jobs compared to a year ago. Including the filling of vacant posts, we appointed 2,419 employees during the year,” Capitec said.

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Capitec sees colossal airtime purchase growth