Investment idea: Capitec

Channel:

PSG Financial Services

Subscribers:

3,900

Published on May 3, 2024 1:45:46 PM ● Video Link: https://www.youtube.com/watch?v=Tx304l_i2vE

Duration: 2:35

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In this report, we look at the key takeaways from the Capitec Bank full-year 2024 results:

o Headline earnings per share increased by 16% at the top of the guidance of 14% to 16% provided by management.
o Net interest income increased by 16% to R16 464 million driven by both asset growth and rising interest rates.
o Gross retail loans and advances grew by 2% to R83.8 billion as credit granting criteria were strengthened while business loans grew 23% to R19.1 billion.
o Net non-interest income increased by 26% to R19 579 million. Net transaction and commission income increased by 29% to R14 787 million with a 10% increase in active clients and a 21% increase in transaction volumes.

Our research supports a hold recommendation.