Transaction Capital ensures it is not caught napping
Minibus taxi financier and debt collector Transaction Capital accelerated its fund raising to avert problems if SA’s sovereign credit rating is downgraded. The group raised R3.5bn during the year to end-September, it said in its results statement on Tuesday morning. Transaction Capital’s subsidiary SA Taxi had advanced R7.2bn to finance 26,352 minibus taxis as at September 30, its results statement said. Less than 40% of SA’s 200,000 minibus taxis were financed, and about a third of those that were financed were SA Taxi customers, Transaction Capital said. SA Taxi grew its net interest income 11% to R744m and its pretax profit 32% to R312m. The group’s debt collection agency Transaction Capital Risk Services (TCRS) grew noninterest revenue by 1.1% to R964m while pretax profit jumped 21% to R230m. "Of the 24.08-million credit-active South African consumers as of June, 9.67-million have impaired credit records," the results statement said. TCRS grew its debt collection book by 30% to ...
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