Capitec Bank Make A Profit Despite Lockdown
Capitec Bank Say Business Is Picking Up
Capitec Bank, who have just turned 20 years old, have published their latest statistics and it shows that though the start of lockdown was tough, during the second half of 2020 things picked up again.
During the first 6 months of the year, their earnings dropped drastically by 78% since clients were not able to move around so freely and use their services. This meant that their earnings dropped to R650 million. This was also because the bank had to hold onto more money to cover their clients increasing debts.
Then in the second half of the year, their earnings picked up dramatically to R3.9 billion.
At the same time, the bank spent a lot of money during 2020 launching new services, increasing digital services and taking on more staff during a time when most other banks were having to cut staff and costs.
Capitec CEO Gerrie Fourie says that:” The Covid-19 pandemic presented the biggest challenge since our inception, but it also gave us an opportunity to adapt and think differently”.
‘The bank has…a total of 16 million clients overall’
The bank has 8.6 million users regularly making use of their banking app and a total of 16 million clients overall.
Capitec Bank are saying that these investments in the future are now paying off and their share prices reflect this. The highest they have ever been is R1525 and their shares are currently trading at around R1380. That’s pretty high for a time period of massive investor fear and caution.