Capitec: still an exceptional business?
CEO Gerrie Fourie says retail credit is a small part of the bank’s business and he would rather talk about Sanlam and insurance
After several weeks of intense scrutiny, it is no surprise that Capitec CEO Gerrie Fourie would like his bank to be seen as just another financial institution. The bank accounts for just 5% of the SA retail credit market, and wonders why the other 95% is not given more attention, Fourie says. "And credit is just one of the four pillars of the business, along with transacting, saving and, most recently, insuring," he adds. Capitec has a substantial retail deposits franchise, with R58bn or a 6.5% market share. In the annual results to February 2018, noninterest revenue accounts for 41% of Capitec’s income and at R5.12bn it is equivalent to 81% of the operating expenses. Fourie is confident that it can grow to 50:50 against interest income once the funeral insurance product is introduced in May. It is underwritten by Sanlam, and the Capitec management team never fails to mention this "endorsement" from such a solid, conservative organisation.Yet, in view of the Viceroy reports on Capit...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.