The banks that have beaten Capitec over five years
The top performer likely would not have been on anyone's proverbial bingo card ...
Despite Capitec being the top-performing bank among the "big six" over the past five years, Standard Bank Group and Investec Limited have delivered even higher returns. While Capitec's shares have increased by 179% on the JSE, Standard Bank and Investec have grown by 150% and 174%, respectively. However, it's essential to note that Standard Bank has paid out higher dividends on a relative basis, outperforming Capitec.
The difference lies in their dividend payout ratios, with Investec targeting a 35% to 50% payout ratio and Standard Bank aiming for 45% to 60%. This has resulted in Standard Bank's total return reaching 249%, and Investec's reaching 264%. Meanwhile, Capitec's total return stands at 212%. Despite these impressive returns, FirstRand, which was previously a favorite among investors, has managed to regain its position as the largest bank in South Africa by market capitalisation.
Written by urgent.news from The Citizen's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
