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Capitec Bank Holdings Limited Reports Strong Financial Growth and Dividend Increase for 2024 | Rateweb
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Capitec Bank Holdings Limited Reports Strong Financial Growth and Dividend Increase for 2024

Capitec Bank Holdings Limited recently released its audited financial statements for the year ended 29 February 2024. The company’s performance metrics and dividend declaration reveal a strong financial position and strategic growth. Let’s delve into a detailed analysis of Capitec’s financial performance.

Financial Performance Overview

Capitec’s financial results for the year ended 29 February 2024 demonstrate notable growth across key metrics. The operating profit before tax increased by 16% to R13.448 billion, showcasing the company’s operational efficiency and revenue generation capabilities.

Key Financial Metrics

Here’s a breakdown of the key financial metrics for Capitec Bank Holdings Limited:

Financial Metric2024 Value2023 ValueGrowth (%)
Operating profit before taxR13.448 billionR11.643 billion16%
Headline earnings per share9,171 cents7,938 cents16%
Earnings per share9,156 cents7,933 cents15%
Total dividend per share4,875 cents4,200 cents16%
Net asset valueR43.531 billionR37.920 billion15%

Dividend Declaration and Policy

Capitec’s dividend policy is to pay out 50% of headline earnings. The final gross dividend declared for the year 2024 is 3,345 cents per share, resulting in a total dividend of 4,875 cents per share. This reflects the company’s commitment to shareholder returns.

Dividend Timeline

  • Last day to trade cum dividend: Tuesday, 14 May 2024.
  • Trading ex-dividend commences: Wednesday, 15 May 2024.
  • Record date: Friday, 17 May 2024.
  • Payment date: Monday, 20 May 2024.

Impact of IFRS 17 Implementation

Capitec Bank implemented the IFRS 17 Insurance contracts standard on 1 March 2023. This necessitated restatements in financial statements for the 2023 financial year, ensuring compliance with updated accounting standards.

Financial Strength and Market Position

The significant growth in operating profit, earnings per share, and net asset value indicates Capitec’s strong financial position and market competitiveness. The company’s performance underscores its ability to navigate challenges and capitalize on opportunities in the banking sector.

Investor Considerations

For investors and shareholders, Capitec’s robust financial performance and dividend declaration are positive indicators of the company’s stability and growth potential. The total dividend per share of 4,875 cents reflects steady returns for shareholders.

Conclusion

Capitec Bank Holdings Limited’s financial performance for the year ended 29 February 2024 demonstrates resilience and strategic foresight in a dynamic market environment. The company’s growth in key metrics and commitment to shareholder value through dividends position it as a strong player in the financial sector. Investors and stakeholders can gain confidence in Capitec’s ability to deliver sustainable growth and value creation.