Capitec Bank, a South African provider of unsecured loans, said profit in the year through February climbed 26 percent as loan and transaction fee income rose and the bank added more than 1 million new active clients.
Net income rose to R3.2 billion ($211 million) from R2.5 billion a year earlier, the lender, based in Stellenbosch near Cape Town, said in a statement on Wednesday. Basic earnings per share increased to R27.79, beating the R26.96 median of 12 analysts’ estimates compiled by Bloomberg. The bank declared a final dividend per share of R6.80 a share.
The lender provides loans not backed by assets to low-income earners and offers consumer banking services. As the South African economy slows amid rising inflation and interest rates, Capitec has focused on boosting customer transactions and increasing fee income while expanding its presence in the country and luring more clients.
“We expect difficult economic conditions to persist,” Capitec said in the statement. “We see this as an opportunity to gain more clients as they look for value.”
Credit: Money Web