New clients push Capitec profits, dividend higher – conservative outlook

by Renee Bonorchis

Capitec Bank CEO Gerrie Fourie
Capitec Bank CEO Gerrie Fourie

(Bloomberg) – Capitec Bank Holdings Ltd., a South African provider of unsecured loans and low-cost accounts, said fiscal first-half profit rose 19 percent after attracting more clients and opening new branches.

Net income in the six months through August climbed to 1.75 billion rand ($129 million), from 1.47 billion rand a year earlier, the lender, based in Stellenbosch near Cape Town, said in a statement on Tuesday. Earnings per share excluding one-time items also increased 19 percent to 15.17 rand, while the company increased its dividend 20 percent to 4.50 rand per share. It added 31 new outlets and almost 650,000 customers over the period.

“The slowdown in South Africa’s economic growth will continue to place pressure on consumers,” Capitec said in the statement. “We will maintain our conservative approach to credit in the current conditions.”