Capitec Bank, a leading retail bank founded by a South African billionaire businessman, reported a record-high profit of R8.4 billion ($577 million) at the end of its fiscal period ending on Feb. 28.
According to the bank’s audited report, its headline earnings, the primary profit measure for companies in South Africa, increased by 84 percent in 2021 to R8.4 billion ($577 million) at the end of its fiscal year in 2022.
The increase in earnings was driven by a 17-percent increase in operating income from R23 billion ($1.58 billion) the previous year to R27 billion ($1.86 billion) at the end of the most recently completed fiscal period.
According to the most recent report, Capitec’s headline earnings have increased by 17 percent over the last five years despite incurring credit impairment in the millions of dollars.
As a result of its strong financial performance, the group’s total assets increased by 14 percent, from R156.5 billion ($10.76 billion) at the end of its fiscal year in 2021 to R179.4 billion ($12.33 billion) as of Feb. 28.
Capitec’s shareholders fund, on the other hand, increased by 20 percent during the reporting period, rising from R29.92 billion ($2.06 billion) to R35.77 billion ($2.46 billion).
Capitec Bank is a leading South African bank and one of the country’s largest lenders in terms of customer base.
Since it was founded 20 years ago by South African billionaire Michiel Le Roux and leading businessmen Jannie Mouton and Riaan Stassen, the bank has grown to become one of the world’s most reputable banking brands, providing transactional banking services as well as loan products such as term loans, credit facilities, and credit cards.
The board of directors recommended a final gross dividend of R24.44 ($1.68) per share as a result of the year’s strong financial performance, bringing the total dividend for the 2022 fiscal year to R36.4 ($2.5) per share.
Dividends paid to shareholders will be subject to withholding tax at the appropriate rate at the time of payment if approved.
