Capitec Bank Holdings expects its half-year earnings to rise as all its businesses contributed positively, it said on Wednesday.
Group headline earnings per share (HEPS) for the six months to end-August were expected to be between 6,764c and 7,041c, representing an increase of between 22% and 27%, it said in a statement.
Group earnings per share (EPS) for the period are expected to be 22%-27% higher.
Shares in the group, which is valued at R428.8bn, were up 1.94% at R3,691.45 at 10.25am on the JSE.
During the reporting period loan disbursements increased and the annualised credit loss ratio remained stable. Together with growth in the net investment portfolio, this had led to an increase in net interest income after credit impairments, it said.
Growth in net transaction income and commission, including value-added services and income from Capitec Connect, continued as active client numbers increased and transaction volumes grew.
The simplification of transaction fees and the merchant commission structure, and a reduction in transaction fees made a “meaningful difference to our clients”, it said.
All funeral insurance policies sold from November 1 2024 were no longer subject to a profit-sharing agreement and the additional profit combined with strong sales had driven growth in net funeral income, it said.
The interim results will include six months of income from the Avafin Holding group compared with four months in the corresponding period last year.
Capitec will release its earnings on October 1.
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