Capitec Bank is one of South Africa’s fastest-growing lenders by profit, said that they will start offering insurance products from next year. This is in a bid to diversify sources of income and strengthen earnings.
Chief Executive Officer Gerrie Fourie said that Capitec is currently not covering insurance, but they are working on it and will launch products next year with a partner. Gerrie declined to disclose information on who Capitec will use as their partner. He said “it’s all systems go for a nationwide launch mid-October,” having sold credit cards through Capitec’s 150 branches in the Western Cape this year.
Capitec is seeking to sell more of its products to its 7.9 million customer following a 44% surge in arrears. Fourie went on to explain that with a total capital adequacy ratio of 34%, the lender does not need to raise funds and will not consider selling debt until next year. The stock increased by as much as 2.7% before paring gains trade by 0.9 higher at R610 as of 10.20am in Johannesburg on Tuesday. First-half net income climbed to R1.75 billion, from R1.47 billion a year earlier, the lender, based in Stellenbosch near Cape Town, said in a statement.