CAPITEC BANK HOLDINGS LIMITED - Audited Summary Financial Statements For The Year Ended 29 February 2020

Audited Summary Financial Statements For The Year Ended 29 February 2020

CAPITEC BANK HOLDINGS LIMITED
Registration number: 1999/025903/06
Registered bank controlling company
Incorporated in the Republic of South Africa
JSE ordinary share code: CPI
ISIN code: ZAE000035861
JSE preference share code: CPIP
ISIN code: ZAE000083838
(“Capitec” or “the company” or “the group”)



AUDITED SUMMARY FINANCIAL STATEMENTS FOR THE YEAR ENDED
29 FEBRUARY 2020


1.   SALIENT FEATURES

     Operating profit before tax increased by 14% to R8.06 billion, from R7.08 billion in the
     prior year.

     Headline earnings per share increased by 19% to 5 428 cents per share, from 4 577
     cents per share in the prior year.

     Earnings per share increased by 18% to 5 400 cents per share, from 4 571 cents per
     share in the prior year.

     Total dividends per share decreased by 57% to 755 cents per share, from 1 750 cents
     per share in the prior year.

2.   DIVIDEND

     Capitec’s ordinary dividend policy is to pay out 40% of headline earnings. As Capitec’s
     capital base and liquidity ratios remain strong, it was the intention of the board to declare
     the final dividend this year. The South African Reserve Bank published Guidance Note
     4/2020 on 6 April 2020 in which banks are directed to act prudently in preserving capital
     and focusing on financial and economic stability. This is due to the absence of appropriate
     factual information to determine the full impact of the COVID-19 pandemic on the South
     African economy. There is a clear expectation communicated in the Guidance Note that
     banks should not declare ordinary dividends for the time being. The board therefore
     considered the guidance of the Reserve Bank as well as the expectation of ordinary
     shareholders regarding the dividend declaration. After extensive deliberation, the board
     decided to support the guidance of the Reserve Bank and decided against the declaration
     of the final ordinary dividend.

3.   SHORT-FORM ANNOUNCEMENT

     This short-form announcement is the responsibility of the directors of the company. It
     contains only a summary of the information in the full announcement (“Full
     Announcement”) and does not contain full or complete details. The Full Announcement
     can be found at:
     https://senspdf.jse.co.za/documents/2020/JSE/ISSE/CPI/CPIFY20.pdf

     Copies of the Full Announcement is also available for viewing on the company’s website
     at https://www.capitecbank.co.za/globalassets/pages/investor-relations/financial-
     results/2020/audited-results/CPIFY20.pdf . In addition, electronic copies of the Full
     Announcement may be requested and obtained, at no charge, from the company at
     InvestorRelations@capitecbank.co.za and from PSG Capital.

     Any investment decisions by investors and/or shareholders should be based on
     consideration of the Full Announcement, as a whole.

     PricewaterhouseCoopers expressed an unmodified audit opinion on the audited
     consolidated financial statements in their report dated 14 April 2020. The report also
     includes communication of key audit matters. Key audit matters are those matters that, in
     their professional judgement, were of most significance in their audit of the consolidated
     financial statements of the current period. The full report and the full audited consolidated
     financial    statements     are     available    on     the     company’s       website    at
     https://www.capitecbank.co.za/globalassets/pages/investor-relations/financial-
     results/2020/annual-report/integrated_annual_report_2020.pdf

4.   RESULTS PRESENTATION

     Shareholders are reminded that Capitec will be hosting a virtual presentation at 08:00 am
     SAST on Tuesday, 14 April 2020 to present the results to investors.

     Presentation details:
     - View and listen mode
     - Links: https://www.capitecbank.co.za/investor-relations/financial-results/2020/ or
        https://youtu.be/TgkHlpso8j0
     - Presentation slides will be available prior to the presentation at:
       https://www.capitecbank.co.za/globalassets/pages/investor-relations/financial-
       results/2020/audited-results/results_presentation_2020.pdf

     Questions and Answers facility:
     - Q&A facility will be available during or after the presentation
     - E-mail Q&A during or after the presentation to: InvestorRelations@capitecbank.co.za


14 April 2020

Sponsor

PSG Capital

Date: 14-04-2020 07:05:00
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