ANNUAL RESULTS
SA Taxi beats big four banks on loans
Transaction Capital’s SA Taxi, which finances more than 10% of SA’s minibus taxis, continues to defy the ailing economy, posting double-digit loan growth over the past year, as demand for taxi finance remains robust among entrepreneurs who do not qualify for bank finance. SA Taxi grew gross loans 16% to R8.3bn over the year to September, belying the domestic economy’s pedestrian economic growth rates and supporting a 22% increase in headline earnings over the period to R303m. Nonperforming loans declined from 17.4% to 17.1%. By contrast, SA’s big four banks posted a 0.7% year-on-year increase in loans in the first half of 2017, according to PwC. About 90% of SA Taxi’s customers did not qualify for bank finance, according to Transaction Capital CEO David Hurwitz. Yet 69% of all South African households relied on minibus taxis for daily transport, he said. SA Taxi granted 7,480 new loans in 2017, a 9% increase on the previous year. The company finances nearly 29,000 minibus taxis, or ...
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