Banker Capitec’s gross loans and advances for the financial year to February rose 10%, even as the banking sector as a whole pared credit extensions to households in response to the weak economy. Gross loans and advances grew to R45.1bn from R40.9bn previously, with growth marking a change from rivals, whose loan books grew an average 4.1% in the 2016 financial year – the lowest in five years, according to professional firm EY. The main reason for the increase was Capitec’s continued exposure to the unsecured lending market, which continued to grow in value in the third quarter even as credit agreements declined, while other banks had a higher exposure to secured products such as mortgages, which declined in value. Capitec CEO Gerrie Fourie said the National Credit Regulator’s statistics showed worse declines across the sector. Credit granted fell 5%, mortgages fell 7%, secured credit 4%, and credit facilities 22% year on year. In contrast, unsecured credit extensions rose 9.64%. "T...
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