South African lender Capitec on Tuesday reported a 15% rise in annual profit, on the upper end of its forecast range, helped by higher interest rates and loan, investment and insurance transactions.
The bank's headline earnings per share - the main profit measure in South Africa - stood at 8,420 cents in the year to Feb. 28, versus 7,300 cents a year earlier.
South African banks, amongst the biggest on the continent, had a good run last year on the back of increasing interest rates and a rebound in economic activity post Covid-19.
But geopolitical events such as Russia's invasion of Ukraine resulted in high local inflation rates which, together with rolling power cuts and lower business confidence, led to greater financial constraints on consumers and businesses in South Africa, the company said.
Profit from the retail bank and insurance business increased by 12% to R9.3 billion ($508.32 million), while profit from the business bank grew by 124% to 389 million rand, the country's largest retail bank by customer numbers said.
Net lending, investment and insurance income grew by 14% to 17.2 billion rand, helped by growth in net loans and advances on interest income and credit life insurance income, and the impact of repo rate increases on interest income, the lender added.
Reuters