Covid knocks Capitec

The Covid-19 crisis knocked Capitec in its latest set of results. The Stellenbosch-based bank saw net credit impairments rise 75%, or by R3 billion, to R7.36 billion for the year to end February.

Capitec also saw a 25% falloff to R29.3 billion in total loans advanced and disbursements and net income had dropped 9% to R15.1 billion for the period.

Its gross loan book decreased 2% to R64 billion while the gross credit card book grew 17% to R6.8 billion.

Though the Covid crisis was a blow, the bank said there was a sharp improvement in the latter half of the year.

“For the first six months of the financial year, while the country was in lockdown, headline earnings decreased by 78% to R650 million compared with the prior year comparative period. During the second six months of the year ended February 2021, headline earnings amounted to R3.9 billion against our target of achieving similar headline earnings as during the six months to February 2020 (R3.3 billion).”

The group resumed final dividend payments after halting them last year.

“A final gross dividend of 1 600 cents per ordinary share (2020: Rnil) was declared on 12 April 2021, bringing the total dividend for the 2021 financial year to 1 600 cents per share (2020: 755 cents per share).”