No-frills Capitec makes move into higher-end malls
The bank says net transaction fee income jumped in the year to end-February due to ‘increasing financial awareness of our clients on the best way to bank’
No-frills bank Capitec grew its account holders by 18% to 8.6-million during the year to end-February, it reported on Tuesday morning. The bank declared a final dividend of R8, taking its total for the year to R12.50, an 18% increase from the previous year’s R10.55. What Capitec terms "primary banking clients" — those who make regular deposits, usually salaries — made up 46% of its active client base. "These primary banking clients are less likely to move their banking elsewhere and, on average, do five times more transactions than a regular banking client," the results statement said. Capitec opened 76 new branches during the financial year, many in "higher-end shopping malls" in its drive to draw wealthier customers from SA’s traditional big four banks. It launched a credit card in September. "So far, it has performed within our risk appetite. Clients earn interest of at least 5.35% per year on a positive balance," Capitec said. The bank grew the total amount of money loaned by 10...
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