Capitec Bank

Key Performance Metrics

  • The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin improved from37% in 2019 to 56.52% in 2023.
  • The average EBIT Margin for the period under analysis was 0.95%, with 2021 and 2023 performing the worst and best, respectively.
  • In the current year, Capitec was able to cover its interest liabilities 2.74 times in the current year- compared to 2019 when it was 57 times.
  • The Asset turnover stood at09 times in 2023 from 0.12 in 2019, 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 5.87% between 2019 and 2020 and a further 5.87% increase was recorded between 2020 and There was then a decrease of 99.89% 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 decreased from 62 to 0.52 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 22% in the current year.

Source: Capitec Annual Report

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