The bank reported headline earnings of R650 million – a decrease of 78%. Operating profit before tax decreased by 86% to R538 million, from R3.83 billion in the previous period and headline earnings per share declined by 78% to R5.62, while income before tax was down 86% to R538 million.
Fourie added: “I think all banks increased their provisions quite a lot. And by accounting laws, you have to do it because you need to look at a future view of possible impact on your book. And that’s what all the banks have done. So I think all the banks have been extremely conservative in the provisions.”
Fourie told City Press that Capitec’s client base grew by 2 million, from 12.6 million clients in August last year to 14.6 million. The severe impact of Covid-19 can be seen in Capitec’s operating profit before tax, which fell 86% to R538 million from R3.83 billion previously. Credit card disbursements decreased by 20% compared with the six months to February, but were 6% higher than the previous corresponding period.
I think all banks increased their provisions quite a lot. And by accounting laws, you have to do it because you need to look at a future view of possible impact on your book. And that’s what all the banks have doneFourie said that, while the performance to date of the Covid-19 rescheduled loans was encouraging, payment success rates going forward would reveal the medium- to long-term impact of the lockdown on its clients.