Capitec Bank, a leading retail bank led by South African billionaire banker Michiel Le Roux, saw its profits after tax exceed R4.6 billion ($255 million) in the first half of its fiscal year 2022 thanks to robust growth across its operating segments.
According to figures in the group’s interim financial result, which was released during trading hours on Sept. 29, Capitec Bank’s profits after tax increased by 19 percent, rising from R3.92 billion ($217.7 million) in the first half of 2021 to R4.67 billion ($259 million).
The double-digit percent increase in profits can be attributed to the banking group’s principal operations, as interest income on loans increased by 13 percent from R6.57 billion in the first six months to R7.43 billion ($412 million), driven by a 35-percent increase in loan sales and disbursements from R19.7 billion ($1.1 billion) to R26.5 billion ($1.47 million).
Aside from the increase in interest income, the leading bank also reported a 31-percent increase in interest income on investments, which rose from R1.91 billion ($105.95 million) in the same period in 2021 to R2.5 billion ($138.7 million).
Capitec Bank is a leading South African bank with one of the largest customer bases in the country. It presently operates 856 branches and 7,436 ATMs across South Africa.
Since its founding 20 years ago by 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 and loan products such as term loans, credit facilities, and credit cards.
Le Roux, who owns a sizable 11.41-percent stake in the leading banking group, earning him a “billionaire’s valuation,” is expected to earn millions in dividend earnings from his stake in the group after the board resolved to reward shareholders with an interim dividend of R14 ($0.78) per share.
