Capitec Bank, the bank with the lowest fees in South Africa by far (even for middle-income clients), according to trade union Solidarity, posted great results this week on the back of significant client growth, transaction volume growth and prudent credit management.
Headline earnings for the 2014/15 year is up 26 percent to R2.5-billion, with transaction income up 35 percent to R2.6-billion.
Capitec Bank now has 2.8-million primary bank clients.
Capitec Bank is attracting higher income and younger clients which influences growth in our transaction income. Primary bank clients still amount to only 44 percent of our total active client base of 6.2-million. This reflects the opportunity still available to us.
We are attracting more than 100 000 new clients per month, because clients know what they get and know what they pay.— Capitec Bank CEO Gerrie Fourie
Ever increasing number of branches and ATMs
The bank increased its distribution footprint in South Africa by another 39 branches and 500 ATMs during the past financial year, bringing the total of these access points to 668 and 3418 respectively.
Credit advanced for the year grew by seven percent.
Conditions remain tight in the credit market and we have applied more stringent criteria during the past year.
Credit applications declined by Capitec Bank have increased to 57 percent of all applications processed for the year, up three percentage points from February 2013.— Capitec Bank CEO Gerrie Fourie
Provisions for doubtful debts increased to 196 percent from 167 percent at the end of the previous financial year.
Retail call savings deposits increased by 32 percent for the year to R19.3-billion and retail fixed savings increased by 19 percent to R10.7-billion for the year.
Listen to the audio for more detail from Capitec Bank CEO Gerrie Fourie on the bank’s good results: