Click here to view Capitec\u2019s financial results.<\/strong><\/a><\/li>\n<\/ul>\n\n\n\nKey to its success in recent years is Capitec\u2019s continued diversification of its business model across several key categories, including Personal Banking, Business Banking, Fintech, and Insurance.<\/p>\n\n\n\n
\u201cEvery one of our South African businesses grew earnings this period, even as the global environment stayed uncertain and economic growth remained muted,\u201d said Capitec CEO Graham Lee.<\/p>\n\n\n\n
Lee added that Capitec was able to grow all these businesses despite not increasing fees for a second year running, as well as its healthy investment in technology.<\/p>\n\n\n\n
Capitec\u2019s upward trajectory shows no sign of slowing down, either, as Capitec improved its cost-to-income ratio to 36% from 40%.<\/p>\n\n\n\n
This is proof that Capitec\u2019s aggressive investment into its systems and technology stack are translating into scalable growth.<\/p>\n\n\n\n
Diversified business model<\/h2>\n\n\n\n
Capitec stressed that it has been able to grow all its businesses thanks to strong fundamentals and disciplined execution of its strategy.<\/p>\n\n\n\n
The bank continues to be built upon the foundation that is its Personal Banking business, which contributed 37% to group earnings.<\/p>\n\n\n\n
Insurance contributed a further 27%, Fintech contributed 29%, and Business Banking contributed 6% to round out the diversified business model.<\/p>\n\n\n\n
The Insurance business increased headline earnings by 22% to R2.5 billion, premised significantly upon the strong performances by Credit Life and Funeral Cover.<\/p>\n\n\n\n
Fintech was a particularly interesting growth vector. Across the group\u2019s Fintech businesses, Value-Added Services, and Capitec Connect, net income increased by 30% year-on-year to R2.7 billion.<\/p>\n\n\n\n
This is an important achievement for Capitec, allowing it to extend its value proposition beyond the traditional banking environment.<\/p>\n\n\n\n
Business Banking saw incredible growth, with headline earnings spiking by 52% to R609 million.<\/p>\n\n\n\n
According to Capitec, this was supported by increased lending income, higher transaction volumes, and improved operating leverage.<\/p>\n\n\n\n
Across all these thriving businesses, Capitec\u2019s key approach remains unchanged: provide a simple, affordable, accessible, and personal financial services experience.<\/p>\n\n\n\n
The future is bright<\/h2>\n\n\n\n
Capitec continues to grow its diversified business in South Africa and is focused on becoming the country\u2019s leading payments provider.<\/p>\n\n\n\n
It is expanding its embedded finance capabilities to bring more value to its clients \u2013 both within the banking sector, and beyond.<\/p>\n\n\n\n
\u201cWe believe that if we continue to create value for our clients, they will in return continue to create value not only for our employees and our shareholders, but for South Africa at large,\u201d said Lee.<\/p>\n\n\n\n
Click here to view Capitec\u2019s financial results.<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Every Capitec business grew its earnings during the past six months \u2013 proving that its diversified business model is thriving.<\/p>\n","protected":false},"author":57,"featured_media":877741,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"posted","_sma_x_autopost_error":"","_sma_x_post_id":"2105548524683218947","_sma_facebook_post_id":"191437357620492_2222604268559972","_sma_instagram_post_id":"","_sma_x_attempts":1,"footnotes":""},"categories":[10459],"tags":[10335,1798,895,229],"class_list":["post-877740","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","tag-banking","tag-capitec","tag-financial-results","tag-results"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/877740","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=877740"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/877740\/revisions"}],"predecessor-version":[{"id":877768,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/877740\/revisions\/877768"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/877741"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=877740"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=877740"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=877740"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}