Capitec on growth streak as it launches mobile service, sees customer numbers grow

Capitec Bank’s customer base grew to 19 million, an increase of 13% over six months.

Bruce Whitfield chats with CEO Gerrie Fourie after Capitec Bank released its half year results.

– Capitec Bank reported 17% profit growth in the six months to end August

– It now has 19 million active customers and plans to optimize that base, says CEO Gerrie Fourie

Photo: @CapitecBankSA

Capitec BankCustomer base jumped to 19 million in the six months to August 2022, an increase of 13%.

Reporting its half-year results, the Bank said pre-tax operating profit rose 17% to R5.894 billion (from R5.042 billion in the prior period).

Overall earnings per share rose 17% to 4,034 cents per share.

Over the past 5 years, our compound annual growth rate has been 17% despite the impact of the COVID-19 pandemic, civil unrest and KwaZulu-Natal flooding. This demonstrates the underlying resilience of our business and the quality of our earnings.

Capitec Bank

However, Capitec’s share price crashed on its results.

Capitec declared a gross interim dividend of 1,400 cents per common share.

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Bruce Whitfield interviews Gerrie Fourie, CEO of Capitec Bank.

Fourie says Karin Richards is right, to some extent, when she says the Bank is “just too expensive,” but adds an endorsement.

Still, we think when you look at 19 million customers, if we can leverage that customer base, there’s a lot of potential. I also think there is a lot of potential on the investment banking side… And then this week we launched Capitec Connect.

Gerrie Fourie, CEO – Capitec Bank

What exactly does Capitec do when it talks about optimizing its customer base?

10.8 million of those 19 million customers are on our digital platform are on our digital platform, which is very positive. Then we have 5.6 million customers who are what we call “quality banking customers”… his pay goes down, he has debit orders and he does the transaction from the app…

Gerrie Fourie, CEO – Capitec Bank

So how do we grow those 5.6 million quality customers to 6/7/8/9 million, and even how do we push those digital customer numbers forward…and then how do we make sure customers embrace our full suite of products .

Gerrie Fourie, CEO – Capitec Bank

We are quite satisfied with the results. We are satisfied with our fundamentals and believe that there are prospects for the future.

Gerrie Fourie, CEO – Capitec Bank

Scroll up to listen to Fourie’s interview

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