Capitec half-year HEPS soar 36%

Capitec, a South African financial services company, has seen a significant uptick in its half-year performance, with headline earnings per share increasing by an impressive 36%. The CEO, Gerrie Fourie, attributes this success to the company's agile approach, strategic investments, and diversification efforts. In a recent interview with CNBC Africa, Fourie highlighted the key factors driving Capitec's growth and outlined the company's plans for the future. One of the major drivers of Capitec's growth has been its focus on transactional income and value-added services. The company saw a 22% increase in transactional income, fueled by a rise in payments through various channels. Additionally, the value-added services segment, which includes offerings like airtime purchases and Capital Connect, experienced a 29% growth. This focus on providing value to clients has helped Capitec solidify its market position and expand its customer base. Another key area of growth for Capitec has been its lending business, which saw a 14% increase in the reporting period. With interest rates on the decline and a positive economic outlook for South Africa, the company is poised to capitalize on new lending opportunities, especially in the unsecured lending and business banking segments. Despite a slight increase in impairments and operating expenses, Capitec remains optimistic about its ability to manage credit risks and control costs effectively. The company's strategic investments in technology and data have also played a crucial role in its success. Capitec has embraced digital innovation and cloud-based solutions to enhance customer experience and drive efficiency. By leveraging data analytics and cutting-edge technology platforms like Salesforce and SAP, the company aims to deliver tailored products and services to its clients. Looking ahead, Capitec is focused on further expanding its customer base and driving growth in key business segments like business banking and insurance. The company is optimistic about the economic prospects for South Africa and believes that a focus on growth and innovation will unlock new opportunities in the market. With the recent acquisition of Avafin, Capitec is also looking to enhance its international exposure and establish itself as a global brand. In his interview, CEO Gerrie Fourie emphasized the importance of entrepreneurship and encouraged young people to consider starting their own businesses. He highlighted the success story of Capitec, which was built from the ground up in just 24 years. By believing in themselves and focusing on adding value to the economy, Fourie believes that young entrepreneurs can make a meaningful impact and contribute to the growth of South Africa's business landscape. Overall, Capitec's strong performance in the first half of the year reflects the company's resilience, adaptability, and strategic vision. As the company continues to innovate and expand its offerings, it is well-positioned to capitalize on emerging opportunities and drive sustainable growth in the financial services sector.