Capitec CEO on latest results, restoring confidence after July riots

South African bank Capitec has reported a remarkable 513 per cent year-on-year surge in headline earnings per share, showcasing its resilience and growth in the midst of the challenges brought about by the global pandemic. The bank has also expanded its client base by 15 per cent in the half-year ending in August 2021, with a total of 16.7 million customers on its platforms. Gerrie Fourie, the CEO of Capitec, recently spoke with CNBC Africa, discussing the financial results and the strategies the bank has in place to continue its upward trajectory. Fourie touched on the handling of an 'ill-considered report' from Australia in 2018 and emphasized that Capitec has remained focused on its business operations and growth despite external challenges. He highlighted the strong financial performance, with a 35% growth in earnings per share since August 2019. Additionally, transactional income increased by 33% and credit levels have returned to pre-pandemic levels. Acknowledging the impact of recent civil unrest in South Africa, Fourie emphasized the importance of government actions to restore confidence in the country. He expressed concern over the lack of consequences for those involved in the riots and emphasized the need for swift action to prevent such events from happening again. Regarding Capitec's client base, Fourie highlighted the bank's focus on digital platforms, with 8.9 million clients engaging with digital services. He emphasized the potential for further growth by optimizing services for existing clients and expanding the range of products offered. In response to increasing competition in the digital banking space, with newcomers like Bank Zero and Discovery entering the market, Fourie stressed the importance of understanding and meeting the needs of clients. He mentioned Capitec's launch of new products and its readiness to compete in an evolving market. Looking to the future, Fourie expressed excitement about Capitec's growth prospects and its focus on creating client value. He emphasized the bank's commitment to building businesses and seizing opportunities within South Africa's dynamic economy. Fourie also shared his concerns about the need for effective execution of strategies both within Capitec and at a broader national level. He called for greater focus and collaboration to unlock South Africa's full potential and drive sustainable growth. In conclusion, Fourie's insights shed light on Capitec's resilience and strategic vision in the face of challenges. With a strong financial performance and a clear focus on client value and innovation, the bank remains well-positioned to navigate the evolving financial landscape in South Africa.