Capitec Bank turns in an improved profit in 2016

Capitec

After  carrying acquiring Creamfinance in its first foreign acquisition, South Africa’s Capitec Bank is reporting a better year in 2016.

The bank’s Lending and investment income for the year increased to ZAR16.071 billion in 2017 compared to ZAR14.019 billion recorded same period 2016.

Net income rose to ZAR10.679 billion in contrast to ZAR9.063 billion recorded in the financial year 2016.

The company’s profit for the year increased to ZAR3.806 billion compared to ZAR3.228 billion recorded in 2016, while headline earnings per share grew 18% to 3 281 cents per share in contrast 2 787 cents per share recorded in 2016.

The bank declared a final gross dividend of 800 cents per ordinary share on 27 March 2017, bringing the total dividends for the year to 1 250 cents per share. There are 115 626 991 ordinary shares in issue.

As an outlook, the bank said will continue to grow our client numbers, branches and ATM network. This will provide us with the opportunity to offer new financial services in the future. New products will continue to have the same foundation of simplicity and affordability as our other products. Our strategy to increase self-service and digital banking will result in improved capacity and efficiencies in the branches.

On 24 March 2017, we announced our investment in Cream Finance Holding Ltd. (‘Creamfinance’). Creamfinance is a leading online technology-driven consumer loans company, offering multiple credit products across international markets. We will acquire an interest of 40% for EUR21 million in three tranches at nine-month intervals, subject to specific agreed performance measures being met. We are excited about this investment and the opportunities it presents for us as we expand our interests beyond the borders of South Africa. We continue to pursue our strategy to be the best retail bank.