Since Capitec began trading in February 2002, it gained on average 8 times the value of it's peers on the FTSE/JSE Africa Banks Index.
Capitec, which specializes in providing loans that aren’t backed by assets to low-income earners, has seen its annual net profit jump almost 130 times since 2003 to 3.79 billion rand ($286 million) as of the end of February. It has expanded faster than the nation’s four biggest banks, adding 1.3 million customers in the last fiscal year alone to 8.6 million.
“Capitec’s large customer base offers an attractive opportunity to cross-sell other financial products in the future,” said Harry Botha, a banking analyst at Avior Capital Markets in Cape Town. And while others are losing customers at the bottom end of the retail market, Capitec is expected to attract more, according to Patrice Rassou, the head of equities at Sanlam Investment Management in Cape Town.
The stock on Wednesday advanced 1.9 percent to close at 863 rand, more than double the gain in the banking index.(source: Bloomberg)
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