Capitec Bank enters business banking. Buys Portuguese bank Mercantile Bank

(Also, read: Capitec Bank is smoking all the other South African banks)

…We’ll in all probability change the name to Capitec Business Bank over time…

Andre du Plessis, Capitec Bank

The Portuguese Government on Thursday approved Capitec Bank’s purchase of Mercantile Bank.

Capitec Bank’s acquisition of Mercantile Bank is a move by the Stellenbosch-based company to enter business banking.

Capitec Bank is the third best bank in the world and the best one in South Africa by far, according to the latest Lafferty global rankings.

Mercantile has been ranked number one for service for Business and Commercial Banking for four years in a row.

The transaction is still subject to authorisation by South African regulators.

The Money Show’s Bruce Whitfield interviewed Andre du Plessis, Capitec Bank Chief Financial Officer.

Listen to the interview in the audio below (and/or scroll down for more quotes from it).

What Mercantile brought is the opportunity to bring the strategy forward [of a bigger play in business banking]… We want to scale the business…

Andre du Plessis, Capitec Bank

The logical thing for us was to expand the service to small and medium-sized enterprises… We have not been able to give them a full banking platform, and that’s what we aim to do…

Andre du Plessis, Capitec Bank

We have a lot of capital… We will still have to talk the Reserve Bank and other regulators as to what the capital requirements of the business bank should be…

Andre du Plessis, Capitec Bank

We plan to run the two operations separately… We don’t intend to rationalise any jobs…

Andre du Plessis, Capitec Bank

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