Capitec Bank added 1.5m clients in a year (500 000 in first two months of 2019)

Capitec Bank gained 500 000 clients in January and February of 2019.

The 19-year-old bank now has 11.4 million active clients.

The fast-growing bank released its results for the year to 28 February 2019 on Thursday.

Here are some highlights:

  • The bank permanently employs 13 774 people.

  • Headline earnings per share and total dividend per share rose by 19% to 4577 cents and 1750 cents respectively.

  • Headline earnings grew by 19% to R5.3 billion.

  • Net transaction fee income (non-lending) grew by 26% to R6.5-billion.

  • The bank signed up 14 000 new credit card clients, on average, every month. The bank charges a flat fee of R35 per month and interest rates as low as prime.

  • Capitec Bank launched its new funeral plan in May 2018. Since then, up to the end of February 2019, it sold 500 000 of them.

  • Retail deposits are up 23% to R71 billion.

  • Six million clients visit its branches every month.

Capitec Bank reduced its digital banking charges on 1 March; a move that’ll cost it R360 million.

It now has 840 branches and more than 5000 ATMs across South Africa.

The Money Show’s Bruce Whitfield interviewed Gerrie Fourie, CEO at Capitec Bank.

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

We believe… you need to have branches… We’ll probably go up to 900 (from 840 currently)… It’s fairly easy to scale… 80% of funeral policies we sell out of branches…

Gerrie Fourie, CEO - Capitec Bank

It’s tough out there and you need to be conservative… We only have a 5% market share of the credit market…

Gerrie Fourie, CEO - Capitec Bank

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This article first appeared on 702 : Capitec Bank added 1.5m clients in a year (500 000 in first two months of 2019)


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