Capitec’s fintech income surges amid MVNO gains
The bank’s fintech income increases 30% to R2.7 billion, as it reports 19% growth in headline earnings in the six months to 31 August.
Capitec Bank's fintech operations experienced a 30% surge in net income to R2.7 billion over the six months ending 31 August. This growth was fueled by its mobile virtual network operator, Capitec Connect, which saw a rise in active clients to 1.8 million and data usage doubling from 14.9 million to 34.3 million gigabytes. The bank reported a 19% increase in headline earnings to R9.5 billion for the period, maintaining a strong return on ordinary shareholders' equity of 31%.
Capitec Connect's voice usage increased 84%, and the company introduced free Capitec-to-Capitec calls, with customers utilizing 70 million free minutes. Additionally, the bank began selling mobile phones through its app, with 27,000 devices sold. Fintech contributed 29% of Capitec's group earnings, reflecting the expanding influence of its non-traditional financial services.
Overall, Capitec's net non-interest income grew 21% to R16.1 billion, accounting for 70% of income from operations after credit impairments. CEO Graham Lee emphasized the bank's diversified business model built on simplicity, affordability, accessibility, and personalized experiences, highlighting the success of its strategy to deliver shared value at scale.
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