Capitec Bank

Key Performance Metrics

  • The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin improved from 35.29% in 2018 to 56.45% in 2022.
  • The average EBIT Margin for the period under analysis was 0.93%, with 2021 and 2022 performing the worst and best, respectively.
  • In the current year, Capitec was able to cover its interest liabilities 3.26 times in the current year- compared to 2018 when it was 2.47 times.
  • The Asset turnover stood at 0.08 times in 2022 from 0.15 in 2018, implying a low performance on Assets of the business in relation to revenue.

Profitability

  • The revenue of Capitec has increased year on year. The revenue decreased by 8.99% between 2018 and 2019 and a further 23.38% increase was recorded between 2019 and 2020. There also occurred an increase of 59.50% between 2021 and 2022 (the current period). 
  • Capitec’s performance in profitability looks good as the return on equity also recorded good performance during the period of analysis.

Liquidity

  • The company’s result in liquidity looks poor, as loan to deposits increased from 0.48 to 0.50 on the last year. Which implies that the company does not have enough assets to settle its current liabilities.

Capital Structure

  • Capitec is both equity and debt financed.
  • The debt-to-equity (D/E) ratio has been maintained stability year on year. The gearing position of the company appears to be low as it stood at 27% in the current year.

Source: Capitec Annual Report

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