Capitec interim results

Capitec delivered earnings at the bottom end of the guided range, but a strong operational performance at the interim stage. The significant decline in HEPS year-on-year was driven by credit impairment charges which increased threefold to R6bn. Underlying operations of the business remained resilient under Covid-19 with pre-provision operating profit increasing 12%. This is attributable to income from operations growing 10% y/y ahead of expense growth of 9%, resulting in positive JAWS for Capitec. Its client base grew 6% to 14.6m despite the Covid-19 headwinds. 2019 Sunday Times Business Leader of the Year, and Capitec CEO Gerrie Fourie, talked to Michael Avery about how the country’s largest retail lender defied the odds.