South Africa’s leading retail bank, Capitec Bank, founded by billionaire Michiel Le Roux, has announced plans to distribute a final dividend of R386.65 million ($20.37 million) to its shareholders. The decision reflects the company’s robust financial performance in 2023.
This dividend payout underscores Capitec Bank’s commitment to shareholder value creation. The bank continues to achieve significant financial milestones under the leadership of visionary banking executive Michiel Le Roux, one of Africa’s wealthiest individuals, solidifying its position as a key player in South Africa’s banking sector.
Subject to shareholder approval at the upcoming Annual General Meeting (AGM), Capitec Bank will disburse a dividend of N3.345 ($0.176) per share, totaling R386.65 million ($20.37 million). The electronic payment will be credited to the bank accounts of certified shareholders on the Register of Members as of record on April 22, 2024.
Capitec Bank’s resilience shines: profits soar despite challenges
Capitec Bank, a leading South African retail lender with a vast customer base, has emerged as a prominent player in the banking sector. Founded in 2001 by Le Roux alongside Jannie Mouton and Riaan Stassen, the bank offers transactional banking services and various loan products, including term loans, credit facilities, and credit cards.
Maintaining its position as Africa’s leading retail bank, Capitec reported a 16-percent increase in headline earnings to R10.58 billion ($550.8 million) at the end of its 2024 fiscal year, driven by growth in non-interest income.
This surge was fueled by a 25.9-percent year-over-year rise in non-interest income, which climbed to R19.58 billion ($1.02 billion) in FY 2024, compared to R15.55 billion ($813.13 million) a year prior. This performance highlights Capitec’s resilience and sound financial management in a challenging economic environment.
Capitec’s total assets expanded by 8.89 percent to R207.58 billion ($10.85 billion) as of February 29, 2024, from R190.64 billion ($9.96 billion) on February 28, 2023. The group’s shareholders’ fund also saw a 15 percent increase during the reporting period, reaching R43.53 billion ($2.28 billion) from R37.92 billion ($1.98 billion).
Capitec Bank boosts dividend
In recognition of this impressive financial performance and its commitment to shareholder returns, Capitec Bank’s board of directors declared a final dividend of R3.345 ($0.176) per share. This, combined with the interim dividend of R1.530 ($0.081) per share, brings the total dividend for the year to R4.875 ($0.257) per share.
This represents an increase from the total dividend of R4.20 ($0.221) per share distributed in 2022, which consisted of an interim dividend of R1.40 ($0.074) per share and a final dividend of R2.80 ($0.147) per share funded from retained earnings.
Capitec Bank’s dividend announcement underscores the bank’s resilience and its ability to navigate challenging economic conditions. This further strengthens its position as a leading player in South Africa’s banking landscape.
