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South Africa’s leading retail bank, Capitec Bank, partly owned by billionaire Michiel Le Roux, reported resilient financial performance for fiscal year (FY) 2024, with headline earnings surging 16 percent to R10.58 billion ($550.8 million). This growth comes amid strategic expansion and a focus on innovative client-centric services.
According to the bank’s audited report, its headline earnings — the key profit measure in South Africa — increased to R10.58 billion ($550.8 million) for FY 2024 ended Feb. 29, 2024, a 16-percent year-over-year (YoY) rise.
The surge in earnings was driven by a 25.9-percent YoY increase in non-interest income, which climbed to R19.58 billion ($1.02 billion) in FY 2024 from R15.55 billion ($813.13 million) a year earlier. This highlights Capitec Bank’s resilience and sound financial management in a challenging economic environment.
Capitec Bank’s robust financial performance
Commenting on the results, Gerrie Fourie, CEO of Capitec Bank, expressed confidence in the bank’s future growth strategy. “Our focus during the past 3 years has been on growth and investment for the future. Our investment has created a diversified financial services group that offers innovative personal and business banking, value-added services (VAS), insurance, a prepaid mobile service, secure payment solutions, and the Live Better rewards program.”
He lauded the retail bank’s long-term strategy of diversifying income streams and growing a quality client base, which produced double-digit growth despite external economic pressures on the credit business.
As a result of its impressive financial performance, the group’s total assets increased 8.89 percent to R207.58 billion ($10.85 billion) as of Feb. 29, 2024, from R190.64 billion ($9.96 billion) as of Feb. 28, 2023. Capitec’s shareholders’ fund also rose 15 percent during the reporting period, reaching R43.53 billion ($2.28 billion) from R37.92 billion ($1.98 billion).
Capitec Bank: Driving South African banking growth
Capitec Bank, a leading South African retail lender with a vast customer base, has emerged as a prominent player in the domestic banking sector. Founded in 2001 by South African billionaire Michiel Le Roux alongside businessmen Jannie Mouton and Riaan Stassen, the bank offers transactional banking services and various loan products, including term loans, credit facilities, and credit cards.
Demonstrating its commitment to shareholder returns, Capitec Bank’s board of directors declared a final dividend of R3.345 ($0.1754) per share on April 22, 2024. This, combined with the interim dividend, brings the total payout ratio to 16 percent, highlighting the bank’s focus on delivering value to investors.
