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Customers queue to draw money from an ATM outside of a Capitec branch.
Capitec Bank has reported a 26% increase in half-year profits, driven by a good performance across banking, insurance, and fintech segments.
The bank reported an increase in active customers, with its client base growing from 23 million to 24 million customers.
Lee says there are some green shoots emerging in the economy, with the informal sector growing faster, also noting the green shoots in logistics, energy and anti-corruption.
However, he says retrenchments in some industries are concerning.
Higher retrenchments were seen in the private healthcare, industrial goods and retail sectors.
Lee says they’ve seen an increase in the average non-salary inflows from businesses, which have gone up 15%, compared to 6% in the rest of the market.
This means that more business owners using their platforms are conducting business and transactions with card machines and inflows are up 26%.
In the same period, Capitec’s net credit impairment charge rose 5% to R3.7 billion and its loan book also increased during the period.
Lee says the bank’s actual credit approval rate has remained stable.
