Capitec Bank said today, it has registered 2.5 million new clients in the financial year ended February, Taking its client base to an impressive 13.9 million.
The strong growth in customers in the financial year under review saw the group’s profits surge by 19% to R6,28-billion.
Gerrie Fourie, CEO of Capitec Bank said the current set of results is proof of the bank’s sustainability and its agility as it enters its 20th year of banking.
“During the year under review, Capitec attracted higher-income clients and therefore advanced better quality loans at lower interest rates. The result was a 19% increase in loans over the 37-84 month loan period and 52% of credit granted over the last three months was to clients with a net income over R20,000,” said Fourie.
The group issued more than 1,1million funeral policies during the reporting period year; while its total branches increased by 12 to 852.
The banking industry in South Africa has for decades been dominated by “the Big Four” (Standard, FNB, Nedbank, and Absa). However, in 2000 a new player entered the industry, called Capitec, which started establishing branches rapidly.
By 2007, the bank had one million active customers; 13 years later it has nearly 14 million clients and the largest bank in the country by client base.
The bank has now set its sights on shaking up the small businesses lending market after it arquired Mercantile Bank in November.
Fourie said Mercantile will offer a digitally-led business banking solution to small and medium businesses, built on the same fundamentals as the retail bank.
“We have an opportunity to disrupt the business banking market – and will continue to use agile technology to understand clients better and provide products to suit their individual needs.”
