Capitec's client base grows to 25 million, driven by innovative financial solutions

CAPITEC Bank Holdings continued to grow exceptionally in the six months to August 31, with its client base increasing by 8% and its Personal Bank now serving more than half the population, or 25 million people.

- EDWARD WEST

The size of its client base, by far the biggest of the South African banks, allowed it to use economies of scale to reduce cost per transaction and increase revenue. This was achieved despite being a price leader in the market on many fronts and investing in new initiatives and products, the CEO in office for only 2.5 months, Graham Lee, said.

Lee said in an online interview that he had served at Capitec for many years before taking up his new post, and his short-term focus was to ensure continuity of the strategy, which he had helped create with the group's management. Over the longer term, the strategy might change, but this depended on new data or opportunities that indicated a change may be necessary.

He mentioned that the bank continued to add new clients in the second half, and, "while I speak only half tongue-in-cheek here that we hope in time all South Africans will bank with Capitec, our main focus is to see how much more we can optimise value for our clients."

Headline earning growth was up 26% to R8 billion, growth that was made possible with their focus on clients and the delivery of additional financial solutions, said Lee in an online presentation.