; Capitec Bank lifts headline earnings by 25% – The Citizen

Capitec Bank lifts headline earnings by 25%

A Capitec branch in Johannesburg, South Africa. (File Photo by Gallo Images / Sunday Sun / Sipho Maluka)

A Capitec branch in Johannesburg, South Africa. (File Photo by Gallo Images / Sunday Sun / Sipho Maluka)

Capitec Bank said on Tuesday that it had increased headline earnings for the six months to the end of August by 25 percent, from R1.173 billion to R1.469 billion, as it continued to attract customers in all income groups, especially younger ones.

A statement from the South African bank that promises to simplify banking said: “We remain focused on building relationships and supporting clients to manage their financial lives better. This has helped us attract young people in both high and low-income categories.”

Headline earnings per share for the six months under review were also up by 25 percent at 1,271 cents and an interim dividend of 375 cents was declared, a 52 percent hike on the 246 cents paid in the corresponding period last year.

The bank noted, however, that the size of the increase reflected a move to increase the portion of the total dividend made up by the interim dividend rather than a change in dividend policy.

Capitec said it had opened 23 new branches and installed 228 new ATMs in the last six months, during which time 773 new jobs had been created.

A statement from the bank, which said operating costs had increased by 21 percent to R2.3 billion during the period, noted that employee numbers had increased as the network expanded but also because it was employing more people in support roles, mainly information technology.

The bank that tells customers “everything we do is to make your life simpler” added: “We place emphasis on the training and development of individuals. All new employees undergo intense training to embed the bank’s values and the bank’s belief in client service.”

 

 

 

 

 

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