Capitec Bank has announced impressive financial results for the six months ending 31 August 2024, showing substantial growth across key performance metrics.
Operating profit before tax surged by 41% to R8.3 billion, up from R5.9 billion in the same period last year.
Headline earnings per share increased by 36% to 5,544 cents, while earnings per share grew by 37% to 5,567 cents. As a result, the bank declared a 36% rise in interim dividends to 2,085 cents per share.
Capitec's total equity grew by 17% to R45.958 billion, reflecting its continued financial strength. Return on ordinary shareholders’ equity (ROE) increased to 29%, compared to 24% in August 2023.
Notably, the bank's personal banking division delivered a significant jump in headline earnings, rising from R2.1 billion to R3.1 billion.
The bank’s app continues to gain traction, with banking app clients increasing by 21% to 12.4 million.
Capitec also highlighted progress in its business banking segment, which focuses on serving SMEs and the under-banked emerging market.
Merchant clients have grown by 31% to 47,267, and the bank opened an average of 11,000 new business accounts monthly in the six months leading to August 2024.
Capitec's strategic investments in technology and data-driven insights have bolstered its ecosystem, and the bank plans to invest an additional R174 million in technology and cloud services over the next six months to enhance scalability and integration across personal and business banking systems.
The bank said that technology and data are central to its objectives. "Our technology investments in cloud infrastructure have allowed us to deliver more personalised services to our clients at scale. During the next 6 months, we plan to invest an additional R174 million over and above operating expenses in technology and cloud services to build scalability and agility.
"We plan to integrate our personal and business banking systems into one system to ensure a single view of clients across personal and business banking," it said.
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