CAPITEC BANK HOLDINGS
Share Code : CPI
ISIN Code : ZAE000035861
NEWS RELEASE
18 February 2002
CAPITEC BANK - FINANCIAL FRIEND OF THE EMERGING MARKET
Stellenbosch - The listing of Capitec Bank from the PSG stable on the JSE
today (18 February) will provide momentum for the establishment of a
strategically positioned national network of retail bank branches with basic
financial services to the country's lower income group.
The network is the result of a comprehensive business plan tested and
refined by Capitec Bank for some time. Almost sixty Capitec Bank branches
are already operating under the Capitec banner situated mostly near railway
stations where there is usually a substantial gathering of people.
The plan is to unbundle Capitec Bank, previously known as Keynes Rational, a
week after the listing on 25 February from PSG Investment Bank and PSG Bank
Holdings with PSG Group ultimately having a 50,93% interest in Capitec Bank.
Capitec Bank will function as the operating subsidiary of Capitec Bank
Holdings (Caphold), which will be listed in the financial services sector of
the JSE Securities Exchange as "Capitec".
The bank says in its pre-listing statement a figure of about R12,5 billion
seems to be generally accepted by most for "term lending" in the
historically "unbanked" sector of the South African economy. Although most
retail banks have some form of direct or indirect presence in the market,
the emphasis is on the lending of money. The provision of savings and
transacting facilities is mostly overlooked. It is with this need that
Capitec Bank is gearing itself up for and to provide a range of savings
products, transacting capabilities and loans for between 30 days and
initially up to 12 months.
Capitec Bank intends bringing real financial services in the true sense of
the word to the market with the emphasis on affordability, simplicity,
accessibility and personal contact. Personal contact is of particular
importance as the market were up to know mainly serviced by a faceless
provider of loan finance, represented by a commission-driven agent.
Capitec's approach is based on personal contact and knowledge of the client.
Capitec Bank is expecting an attributable income of about R44 million, or
headline earnings per share of about 75 cents, for the year ending February
2002. An lower attributable in come of about R29,4 million, or 46,6 cents
per share, is forecast for the financial year ending February 2003 as the
bank will be expanding its business and rolling out its infrastructure
extensively during this period. An upward trend in profits is expected for
the 2004 financial year.
The bank has already made strong headway with the development and
implementation of a sophisticated IT system, including an electronic payment
collection option destined to provide a giant leap forward in bringing
social acceptability to the micro-lending industry.
Capitec Bank also sees gaining access to the national network of payment
systems operated by the South African banking industry as a priority. The
service benefits of a clearing bank will thus become more accessible on a
national scale to a large section of the population of South Africa.
Capitec Bank's CEO, Michiel le Roux, said the focus of the group is on
establishing and operating a stable, trusted and profitable retail bank for
the emerging market.
About the timing of the listing he said: "Capitec Bank is not coming to the
market for capital, but to show to investors a tried and tested business
plan that works. The benefits of the listing will become clear as the
business plan starts to bear fruit," he said.
Ends
Issued by Gerhard Cloete on behalf of Capitec Bank Holdings Limited
Enquiries
Michiel le Roux
CEO
Capitec Bank Holdings
Tel (021) 809 5900
Fax (021) 880 1794
Cell 083 308 6156
Gerhard Cloete
Cell 083 300 6850
E-mail clt@iafrica.com
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