Piet Mouton's stake in Capitec yields $10 million in dividends

Like billionaire Michiel Le Roux, who also holds shares in Capitec Bank, South African businessman Petrus Johannes Mouton (Piet Mouton) is poised to receive a dividend of R187.2 million ($10.2 million) from his stake in Capitec Bank, a prominent financial services provider based in Stellenbosch.

According to data tracked by Billionaires.Africa, Mouton’s total dividend earnings for the year will reach R280.8 million ($15.3 million) when he receives the $10.2-million dividend payment later this year. The dividend will be drawn from the group’s retained earnings of R33.06 billion ($1.81 billion).

Capitec Bank is a leading South African bank with one of the country’s largest customer bases. It presently operates 856 branches and 7,436 ATMs across South Africa.

Mouton, a well-known South African businessman and executive who heads PSG Group, a South African investment holding founded by his father, Jannie Mouton, in 1995, owns 5.78 percent of Capitec Bank, or 6,685,622 shares.

Since its founding 20 years ago by Michiel Le Roux, Riaan Stassen, and Jannie Mouton, Capitec Bank has become one of the world’s most reputable retail banking brands, offering transactional banking and loan products.

At the end of its 2023 fiscal year, the South African retail bank reported a 14-percent surge in its profit from R8.52 billion ($466.4 million) in 2022 to R9.7 billion ($531 million) by the end of its 2023 fiscal year.

The double-digit percent increase in the Le Roux-led retail bank’s earnings can be attributed to the rise in the group’s lending, investment, and insurance income, which increased from R19.96 billion ($1.1 billion) to R24.17 billion ($1.32 billion).

The bank’s impressive increase in lending, investment, and insurance income was complemented by cost-cutting strategies that significantly decreased operating expenses from R12.55 billion ($687 million) to R11.87 billion ($650 million).