Capitec Bank Announces $20.37 Million Dividend Payout

Capitec Bank, South Africa’s top retail bank founded by billionaire Michiel Le Roux, has announced plans to pay its shareholders a final dividend of R386.65 million ($20.37 million). The decision recognizes the company’s strong financial performance in 2023.

This dividend payment demonstrates Capitec Bank’s commitment to generating shareholder value. Under the direction of visionary banking executive Michiel Le Roux, one of Africa’s wealthiest persons, the bank continues to reach important financial milestones, firmly establishing itself as a vital player in South Africa’s banking market.

Capitec Bank will pay a dividend of N3.345 ($0.176) per share, totaling R386.65 million ($20.37 million), pending shareholder approval at the next Annual General Meeting (AGM). The electronic payment will be credited to the certified shareholders’ bank accounts listed on the Register of Members as of April 22, 2024.

Capitec Bank, a major South African retail lender with a large customer base, has emerged as a key player in the banking industry. The bank was founded in 2001 by South African millionaire Michiel Le Roux, Jannie Mouton, and Riaan Stassen. It provides transactional banking services as well as a variety of financial products such as term loans, credit facilities, and credit cards.

Capitec, Africa’s top retail bank, reported a 16% increase in headline earnings to R10.58 billion ($550.8 million) at the end of the 2024 fiscal year, led by growth in non-interest revenue.

In FY 2024, non-interest income increased by 25.9 percent to R19.58 billion ($1.02 billion), up from R15.55 billion ($813.13 million) the previous year. This achievement demonstrates Capitec’s resilience and solid financial management in an uncertain economic environment.

Capitec’s total assets increased by 8.89 percent to R207.58 billion ($10.85 billion) as of February 29, 2024, up from R190.64 billion ($9.96 billion) on February 28, 2023. The group’s shareholders’ fund also increased by 15% during the reporting year, reaching R43.53 billion ($2.28 billion) from R37.92 billion ($1.98 billion).

In acknowledgment of Capitec Bank’s strong financial performance and commitment to shareholder returns, the board of directors declared a final dividend of R3.345 ($0.176) per share. This, together with the interim dividend of R1.530 ($0.081) per share, takes the total annual payout to R4.875 ($0.257) per share.

This is an increase over the total dividend of R4.20 ($0.221) per share issued in 2022, which included an interim dividend of R1.40 ($0.074) per share and a final payout of R2.80 ($0.147) per share funded by retained earnings.

Capitec Bank’s dividend announcement demonstrates the company’s resilience and capacity to withstand difficult economic conditions. This reinforces its position as a key player in South Africa’s banking sector.

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