Business

Capitec earnings soar as shift to digital fuels shopper development


Banking group Capitec on Tuesday (12 April), reported an 84% improve in headline earnings per share for the yr ended February 2022, to R73, with energetic purchasers up 14% to 18.1 million, boosted by continued momentum in digital banking.

The group’s headline earnings elevated to R8.4 billion from R4.6 billion (2020: R6.3 billion). Operating earnings earlier than credit score impairments grew by 17% to R27.0 billion (2021: R23.0 billion; 2020: R21.1 billion). “We maintained a sustainable compound annual growth rate of 17% in headline earnings over the past 5 years and 23% for the past 10 years,” it stated.

A closing gross dividend of two,440 cents per atypical share (2021: 1,600 cents) was declared on 11 April 2022, bringing the whole dividend for the 2022 monetary yr to three,640 cents per share (2021: 1,600 cents per share). The group declared a particular dividend per atypical share of 1,500 cents.

Profit after tax improved to R8.5 billion, from R4.46 billion in 2021.

Gerrie Fourie, Capitec chief govt officer, stated: “During the previous yr, our agility and focus made it straightforward for the financial institution to rapidly adapt to the brand new actuality. We seen the problem as a chance to help our purchasers and make banking uncomplicated and accessible to all.

“Capitec’s digital solutions have been crucial in enabling this growth. In addition, our staff have been instrumental in this adoption and have excelled in this new, hybrid, digital world.”

As a consequence, he stated that Capitec continues a powerful recruitment drive for know-how and knowledge abilities, to speed up the financial institution’s digital transformation even additional. During the previous yr, 1,367 new staff had been employed with 26% of recent hires fulfilling essential IT and knowledge enterprise growth wants.

“Despite the pandemic, the business continues to grow and invest in its people and has already started recruiting top talent to fill 500 new positions this year.”

The lender stated that purchasers’ transactional behaviour shifted away from money in the direction of digital channels, accelerated by the pandemic. Overall, web transaction earnings elevated by 21% to R10.5 billion. Clients rapidly undertake contactless card funds and on-line purchasing, it stated.

Credit impairments decreased by 55% as the total impression of the Covid-19 pandemic was accounted for within the 2021 monetary yr. Operating bills elevated by 33% from R9.5 billion to R12.6 billion (2020: R8.6 billion) “as we rewarded our people for their commitment and contribution to the group,” the financial institution stated.

Total worker prices elevated by 57% to R7.4 billion (2021: R4.7 billion; 2020: R4.4 billion). Performance bonuses elevated to R1.2 billion (2021: R0.3 billion; 2020: R0.5 billion) attributable to greater development in headline earnings.

At the top of the 2022 monetary yr, Capitec had 14,758 staff.

Business financial institution

Business banking contributed R174.5 million to group earnings (2021: R1.5 million loss; 2020: R3.0 million). Capitec stated that the enterprise financial institution’s gross mortgage ebook elevated to R12.9 billion (2021: R11.0 billion; 2020: R10.3 billion), whereas whole energetic purchasers, together with POS retailers, elevated by 10% to 125,270 (2021: 114,072; 2020: 68,422). Business banking accounts grew by 31%.

“The rebranding of Mercantile Bank, the Business banking division of Capitec Bank, to Capitec Business will accelerate client growth. The business bank offering will encompass the same principles of accessibility, simplicity, affordability and personalised service that our retail clients have grown to expect. We have an opportunity to provide the best digital banking solution to every entrepreneur and small- to medium-sized business.”

Retail financial institution

Net transaction earnings elevated by 21% to R9.8 billion (2021: R8.1 billion; 2020: R7.4 billion). Total transaction volumes elevated by 26% to six.7 billion from 5.3 billion (2020: 4.5 billion).

At the top of February 2022, there have been 6.6 million energetic banking app customers (2021: 5.3 million; 2020: 3.4 million). Active digital customers of the banking app, USSD channel, web banking or a mix of digital channels elevated by 17% to 10.1 million (2021: 8.6 million; 2020: 6.7 million).

Clients carried out 1.4 billion digital transactions for the yr, a rise of 27% (2021: 1.1 billion; 2020: 0.8 billion), Capitec stated.

 


Read: Capitec now has a fully-fledged rewards programme – right here’s the way it works



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