Capitec banks on the economy

Johannesburg – Although Capitec – the local bank that prides itself on offering lower costs – grew in the year to February, bad debts are starting to make themselves felt.

The listed group on Wednesday reported headline earnings per share up 26 percent to 2 787 cents as headline earnings rose by the same percentage to R3.2 billion. It declared a 680c a share dividend, taking the total dividend for the year to 1 055c a share, a 26 percent gain on the previous financial year.

In a statement, Capitec said the year to February saw the largest growth in its client base since the bank was started in 2001 and it added a million new customers, to take its client base to 7.3 million active customers.

The bank adds its cellphone banking app has seen good uptake and is now used by a million clients.

It says the continued economic slowdown should help it grow its base as consumers seek more value for money.