Capitec’s profit rises 25%

Capitec Bank reaps rewards after gaining 576 000 new customers and opening more branches.

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Johannesburg - Capitec Bank, a South African provider of unsecured loans, said fiscal first-half profit rose 25 percent after it attracted 576 000 new customers and opened more branches.

Net income in the six months through August climbed to R1.47 billion ($104.5 million), from R1.17 billion a year earlier, the lender, based in Stellenbosch, near Cape Town, said on Tuesday in a statement. Earnings per share excluding one-time items rose 25 percent to R12.71, while the company increased its dividend 52 percent to R3.75 per share.

The lender, which provides loans not backed by assets, has been adding clients and boosting customer transactions. It has diversified into taking deposits to rely less on unsecured lending as South Africa’s economy slows and consumers contend with rising inflation and interest rates.

“Despite an unsupportive economic environment, we are bullish on retail banking and see opportunities to grow our client base and product offering,” Capitec said in the statement. “We are cautious on credit but remain optimistic that we can grow our loan book in a prudent manner.”

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