The bank also reported a 19% rise in headline earnings, despite a tough economic climate and increased competition
Nick Hedley
“It’s actually not in response to the new entrants,” said Capitec CEO Gerrie Fourie when asked whether this was a ploy to defend the bank’s growing market share against a host of new entrants. TymeBank, Bank Zero and Discovery Bank are all in the process of launching, while another competitor, African Bank, is coming to market with its own transactional offering.
Capitec’s headline earnings in the year ended February rose 19% to R5.3bn as its client base grew by 1.5-million to 11.4-million customers, it said on Thursday. At the end of February, the gross credit card book was R3.6bn or 3% of the total SA retail credit card market.Meyrick Barker, investment analyst at Kagiso Asset Management, said Capitec was still disrupting the industry by raising service levels, boosting access to credit and lowering fees.
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