Capitec, SA’s biggest bank by customer numbers, expects annual earnings to surge more than a quarter from a year earlier, thanks to continued improvement in credit impairment charges and credit loss ratios.
In a trading statement published on Friday, the bank said headline earnings per share (HEPS) — which strips out one-off and exceptional items — will be R117.39-R121.06 for the year to end-February, representing an increase of 28%-32% compared with the R91.71 reported in the same period a year earlier.
The increase in profit is expected to boost earnings per share to R117.20-R120.86 also 28%-32% higher than R91.56 recorded in the previous comparative period.
The positive trend in credit impairment charges and credit loss ratios observed in the second half of the 2024 financial year has carried over into the 2025 financial year, the Stellenbosch-based lender said.
“Net transaction and commission income (including value-added services and Capitec Connect) was a significant driver of growth during the current financial year. Active and fully banked client numbers and client acceptance of our new and maturing products continued to grow,” Capitec said.
In December, the group said it processed R25.4bn worth of payments over the Black Friday weekend. Data shows Shoprite, Takealot and Shein experienced sales increases as shoppers flocked to find “bargain” deals.
Capitec marketing and communication executive Francois Viviers said the bank handled about 500 transactions per second on Black Friday, with nearly 600 transactions per second on Saturday morning.
“Our data highlights that South African shoppers are extending their Black Friday purchases throughout the weekend, not just on Friday. We’re also seeing a noticeable shift from cash to card payments and from in-store to online shopping. Additionally, there’s a growing emphasis on purchasing essentials over luxury goods,” he said.
Earlier this year, the bank announced a revised fee structure for 2025, which it said would make banking more accessible and affordable. The fee structure simplifies fees by lowering prices on key services, “reflecting the bank’s ongoing commitment to financial inclusion”.
“By consolidating our fees into clear, simple tiers and reducing costs for essential services like debit orders and immediate payments, we’re making it easier for South Africans to understand and manage their banking fees,” Viviers said. /With Kabelo Khumalo
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