Capitec is looking to get a share of South Africa’s stokvel pie as the bank announced it would be launching its own stokvel products in 2025.
The low-cost bank’s chief executive Gerrie Fourie noted this new venture for Capitec this week during an interview with Biznews, as the company noted its stellar performance for 2024.
Capitec released its first half of its 2024 financial year and noted that it had an incredibly strong performance, making around R2.5 billion in profit before tax.
The low-cost bank said that its operating profit before tax increased by 41% to R8.309 billion, from R5.893 billion in the comparative period.
Capitec said that its headline earnings per share increased by 36%, and said it had a return on equity nearing 30%.
The bank said that it has now reached 23.2 million active clients and this included point-of-sale merchants.
According to their performance statement, Capitec’s total equity increased by 17% to R45.958 billion, from R39.353 billion in the comparative period.
“We have continued to invest significantly since 2020, despite the tough economy, and have developed solutions that meet the needs of our clients,” Fourie said.
The CEO said that Capitec has looked at its data and customer base and has tried to create products that fit needs.
The bank has now identified stokvels as a product that its clients will utilise in order to enhance their banking and financial experience.
“The one area which we have neglected, and which is definitely on the cards for next year, is stokvels,” Fourie noted.
This will not be the only product Capitec is looking to launch in 2025.
Fourie said that the bank has a number of plans in development, specifically tailored for investment space but did not disclose what these products are.
Stokvels are a billion rand industry
In April, First National Bank (FNB) said that the bank saw a 15% increase in net deposits, surpassing the R9.6 billion mark in total member contributions at over the past year.
Stokvels continued to demonstrate South Africa's tenacity and commitment to saving, despite the prevailing tough economic environment, the bank noted.
Himal Parbhoo, the CEO of FNB Retail Cash Investments said that being a member of a stokvel is one of the most popular ways for South Africans to develop a savings culture.
He noted that the challenge has always been in ensuring that the stokvel savings are managed efficiently, while yielding the desired outcome to meet the stokvel groups’ goals.
South African stokvels are a more than R45 billion industry with over 800,000 estimated different groups.
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