Capitec Bank has reporting an increase in earnings by 27-percent from February 2013 to February 2014. They said their client base has also increased to 5.4-million.
JOHANNESBURG – Capitec Bank has made a giant leap in the banking sector, becoming the second biggest bank in the country by client numbers.
With just over 9-million clients, the retail bank recorded more than 100,000 people joining it clientele each month last year further hopping to a 30 percent growth in its share price so far this year.
The bank also reported an increase in earnings of 17 percent in six months to the end of August, becoming the third biggest in terms of market value.
Its CEO Gerrie Fourie, a former general manager at Stellenbosch Farmers Winery says although Capitec has always been viewed as a micro lender, it has now proven its banking abilities.
Fourie said there are still hiccups in its loan book but with recent results is adamant you can’t keep a good bank down.
Although Fourie’s original business plan did not bank on a huge success of this scale, he says the bank is still experiencing challenges with credit clients to debt review companies that offer services to clients not under financial pressure.
He said there are still opportunities for the bank to expand its services in the near future.
“We are not in insurance, business banking, so those are still opportunities.”
The bank is looking into offering investment vehicles like unit trusts, as it widens access to its credit card offering, home loans and other loans for big ticket items.