Capitec customers up 18%, CEO retires
Capitec Bank has reported an 18% rise in active clients to 5.016 million, in financial results for the six months ending August 2013.
The group also announced that its chief executive, Riaan Stassen, a founding member, has decided to retire the end of December 2013, having turned sixty in August.
Gerrie Fourie (49), an executive member of the Capitec Bank management team since its inception in 2000, will take over from Stassen on 1 January 2014.
He is currently responsible for sales and operations, which includes the 589 branch network of the bank.
Before joining Capitec Bank, Fourie was employed in a senior position at Stellenbosch Farmers Winery.
Staasen will continue to serve on the Boards of Capitec and its wholly-owned banking subsidiary Capitec Bank, as a non-executive director.
“We have passed the 5 million client mark and continue to grow. 339,000 new clients have chosen to bank with Capitec over the last six months. Our market share of primary banking clients is now over 10%,” Capitec said in a statement on Wednesday (25 September).
Headline earnings per share improved 20% to 844 cents, while income from banking operations was up 40% to R4.94 billion.
Capitec declared an interim dividend per share of 203 cents, up 20%.
Branches and ATMs
The group said that growth in the number of branches continues, with 29 new branches opened in the reporting period. In its annual results ended February 2013, Capitec reported 560 branches, up from 507 in 2012, and 455 in 2011.
“The economic slowdown will make it more challenging to meet the higher target of 75 new branches (2013: 55) as developers shelve plans for new shopping malls,” the group said.
The number of ATMs owned by Capitec grew 15% to 671 over the period, while those in partnership swelled 22% to 2,173 units – meaning a total of 2,844.
A slow economy
Capitec said it was concerned about the fundamentals of the economy, with South Africa operating below potential.
“Many sectors are impacted by labour cost pressures, low productivity and inertia as extended strikes and prolonged bargaining erode the ability of companies to operate sustainably. There are also now more financial pressures on consumers.”
Looking ahead, the bank said that despite South Africa’s medium-term challenges, it remains excited about the future and the opportunities available.
“Unsecured credit is here to stay and, for most, the need for a low-cost banking solution is a necessity. Our management approach will remain vigilant, cautious and responsible regarding the management of our clients’ money.”
More news on Capitec
Is Capitec really the 4th biggest bank in SA?
Loading ...