Capitec's 2014 FY earnings up 27%

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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.

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.

web_money_bank_Capitec_logo

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.

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 – South African unsecured lender Capitec Bank Holdings Ltd reported a 27 percent increase in full-year earnings on Tuesday as growth in active customers boosted transaction fee income.

Capitec said diluted deadline earnings per share came in at R22,06 from R17,40 cents a year earlier. It had flagged earnings could rise by as much as 27 percent.

Transaction fee income was up 35 percent at R2,6 billion after the lender&39;s active clients increased by nearly 860,000. However, Capitec expects that to slow down next year following new limits on card processing fees.

While interest income rose 14 percent to R10,8 billion, gross loan impairments also increased by 5 percent to R4,6 billion as a result of prolonged strikes in the mining sector, Capitec said.

Net income climbed from 2,04 billion to 2.56 billion.

Last year, Capitec&39;s main rival in lending without collateral, African Bank, had to undergo rescue after it went under from a mountain of bad debt.

Bigger South African banks performed strongly in 2014 as they grew loan income while cutting back bad debt.

Capitec shares are up 37 percent this year, outpacing a 5.6 percent gain in the Johannesburg&39;s All-share index so far this year.

The bank&39;s lending practices have been investigated by the National Credit Regulator.

In February, the lender was fined R5 million by the banking regulator, for breaching FICA laws, which amongst other things, stipulates that cash transactions exceeding, R24,999 must be reported.

Capitec said the FICA breach was “an oversight” that it discovered and reported to the central bank itself.