Shareholders Score Big After Record Capitec Earnings

Capitec, South Africa's biggest retail bank by customers, is increasing its payout to shareholders after record annual earnings.

The group's return on equity increased to 29 during the year under review, paving the way for the dividend payout to 55 from 50.

Capitec reported a 30 jump in headline earnings to R13.6bn from R10.6bn a year ago with financial highlights including a 54 increase in net interest income after credit impairments to R11.9bn. The group reported a 7.5 credit loss ratio, a 61 increase in value added services and Capitec Connect to R4.4bn and a 44 jump in funeral and life income to R1.9bn.

The bank said more than 11-million clients now used the Capitec app to purchase airtime, data, electricity, vouchers and to pay bills.

The bank captures more than 40 of South Africas airtime and data transactions and one in five digital vehicle licence renewals now occur on its platform.