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CAPITEC BANK HOLDINGS LIMITED - Summarised Audited Financial Statements For The Year Ended 28 February 2013

Release Date: 27/03/2013 07:05
Code(s): CPI CPIP     PDF:  
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Summarised Audited Financial Statements For The Year Ended 28 February 2013

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


SUMMARISED AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2013

· Headline earnings per share up 35% to 1 519 cents
· Earnings up 47%
· Final dividend per share: 405 cents
· Return on equity: 27%
· Active clients: 4.7 million
· New jobs created: 1 114


                                                                                  Change %
                                                             2013        2012    2013/2012        2011
PROFITABILITY
Interest income                                 Rm          7 085       4 347           63       2 809    
Net loan fee income                             Rm          1 153       1 471          (22)      1 151
Net transaction fee income                      Rm          1 349         836           61         532
Interest paid                                   Rm         (1 663)     (1 022)          63        (751)
Other banking income                            Rm              -          14                        -
Income from banking operations                  Rm          7 924       5 646           40       3 741
Net loan impairment expense                     Rm         (2 659)     (1 604)          66        (988)
Net banking income                              Rm          5 265       4 042           30       2 753
Banking operating expenses                      Rm         (2 994)     (2 486)          20      (1 813)
Non-banking operations                          Rm              7           3                        -
Tax                                             Rm           (673)       (464)          45        (284)
Preference dividend                             Rm            (21)        (19)          11         (16)
Earnings attributable to ordinary shareholders
· Basic                                         Rm          1 584       1 075           47         640
· Headline                                      Rm          1 584       1 078           47         640
Net transaction fee income to banking
operating expense                               %              45          34                       29
Net transaction fee income to 
net banking income                              %              26          21                       19
Cost-to-income ratio - banking activities       %              38          44                       48
Return on ordinary shareholders' equity         %              27          29                       34
Earnings per share
· Attributable                                  cents       1 519       1 122           35         757
· Headline                                      cents       1 519       1 125           35         757
· Diluted attributable                          cents       1 498       1 096           37         730
· Diluted headline                              cents       1 498       1 099           36         730               
Dividends per share
· Interim                                       cents         169         125           35          85
· Final                                         cents         405         300           35         205
· Total                                         cents         574         425           35         290
Dividend cover                                  x             2.6         2.6                      2.6

ASSETS
Net loans and advances                          Rm         27 935      16 863           66      10 071
Cash and cash equivalents                       Rm          7 143       4 551           57       2 842                
Investments                                     Rm          2 023       1 199           69         989
Other                                           Rm          1 246       1 009           23         538
Total assets                                    Rm         38 347      23 622           62      14 440

LIABILITIES
Deposits                                        Rm         29 000      17 692           64      10 450       
Other                                           Rm            834         744           12         539
Total liabilities                               Rm         29 834      18 436           62      10 989

EQUITY
Shareholders' funds                             Rm          8 513       5 185           64       3 451
Capital adequacy ratio                          %              41          39                       41
Net asset value per ordinary share              cents       7 212       4 962           45       3 418
Share price                                     cents      18 800      18 500            2      15 901
Market capitalisation                           Rm         21 515      18 367           17      14 850
Number of shares in issue                       '000      114 442      99 282           15      93 388
Share options                
· Number outstanding                            '000        2 177       3 087          (29)      4 222
· Number outstanding to 
  total shares in issue                         %               2           3                        5
· Average strike price                          cents       6 294       4 358           44       3 510
· Average time to maturity                      months         15          16                       20

OPERATIONS
Branches                                                      560         507           10         455
Employees                                                   8 308       7 194           15       5 331
Active clients                                  '000        4 677       3 706           26       2 829
ATMs
· Own                                                         640         550           16         479
· Partnership                                               1 914       1 526           25       1 182
· Total                                                     2 554       2 076           23       1 661
Capital expenditure                             Rm            473         381           24         235

SALES
Loans
Value of loans advanced                         Rm         25 401      19 393           31      14 318
Number of loans advanced                        '000        3 760       4 648          (19)      3 907
Average loan amount                             R           6 756       4 172           62       3 665
Repayments                                      Rm         19 159      16 173           18      12 117
Gross loans and advances                        Rm         30 658      18 408           67      10 916
Loans past due (arrears)                        Rm          1 777         932           91         626
Arrears to gross loans and advances             %             5.8         5.1                      5.7
Provision for doubtful debts                    Rm          2 723       1 545           76         845
Provision for doubtful debts to
gross loans and advances                        %             8.9         8.4                      7.7
Arrears coverage ratio                          %             153         166                      135
Loan revenue                                    Rm          7 983       5 660           41       3 800
Loan revenue to average gross loans 
and advances                                    %            32.5        38.6                     46.0
Gross loan impairment expense                   Rm          2 932       1 780           65       1 088
Recoveries                                      Rm            273         176           55         100
Net loan impairment expense                     Rm          2 659       1 604           66         988
Net loan impairment expense to loan revenue     %            33.3        28.3                     26.0
Net loan impairment expense to average gross
loans and advances                              %            10.8        10.9                     12.0
Deposits
Wholesale deposits                              Rm         11 679       7 162           63       3 954
Retail call savings                             Rm         10 335       6 348           63       3 933
Retail fixed savings                            Rm          6 844       4 015           70       2 316

THE REVOLUTION CONTINUES

In the last twelve months our earnings increased by 47% to R1 584 million. We raised R2.2 billion in new 
share capital through a rights issue but still managed a return of 27% on equity. We appreciate the 
confidence of our shareholders and the markets, but our long-term success depends on the support of 
ordinary people who trust us to look after their money. On this front, we have exciting news.

On the last day of our financial year, 28 February 2013, individual clients performed 2.7 million 
transactions on their Capitec Bank accounts. This was the busiest day of our year and is an increase 
of 80% on the busiest day of the previous year. 

We have 971 000 clients more than a year ago using their accounts more often ­ some borrow from us, 
some save with us, some transact with us, and many do all three. We love to be their bank of choice and 
the number of prime clients who use us to receive their salary has increased by 45% to 1.8 million.

Net transaction fee income grew by R513 million to R1.3 billion. When a client uses a Capitec Bank card 
to pay for a meal at a restaurant and the restaurateur uses a card machine provided by another bank we 
receive a fee of which a portion is paid over to the other bank. The net transaction fee is the portion 
of the fee thats ours, and it does not indicate that it is profit after costs. Transaction income covered 
45% of our bank operating expenses, up from 34% last year, exceeding our target of 40% set three years ago. 
Our cost-to-income ratio dropped to 38%, an unusually low figure for a full-service bank with a national 
branch network.

People love the simplicity of our products and our easy-to-understand pricing. Many of our clients, who 
receive their salaries in their Capitec Bank accounts, receive more in interest than they pay in fees. 
Clients who incur banking fees of more than R12.50 receive a monthly sms to tell them what we charged 
them and how much interest we paid them. Happy clients are our best advertisement.

According to the AMPS research, our share of banking clients has grown from 5% in 2010 to 9% two years 
later and 61% of all other banking clients interviewed would consider banking with us, by far the highest
rating of any South African bank by clients of its competitors. We have huge growth opportunities.

POLICY TRIUMPH

The growth of the unsecured lending market is a triumph for the government's ambition to extend banking 
to those previously excluded from banks.

The initial deregulation of interest rates in 1994 created a large and chaotic market for credit: 
the microloan industry was born. Subsequently larger, more structured players became dominant, reducing 
interest rates and, in the case of Capitec Bank, offering a complete banking service. The National Credit 
Act which came into force in 2007 was a landmark: the rules of credit granting were legislated and abusive 
practices were banned. With this regulation the market took off: in 2007 the unsecured lending industry 
totalled R29 billion (according to the National Credit Regulator). The industry now has a total book of 
R171 billion, 14% of the total South African credit market.

This phenomenal growth has been a huge boon to South Africans. Only 6% of adults in South Africa have a 
home loan. Nobody can grant a home loan on an informal house or on a house built on communal land. Most 
houses in townships do not qualify for a mortgage. Yet, every one of these homes requires financing when 
a bathroom or a fence is added. Excluding somebody from the credit market because of a lack of security 
is an attack on the human dignity of that person.

Capitec Bank has been a leader in this huge expansion of the credit market. Our maximum loan period 
has been extended from three years to seven years. The interest rates that we charge our clients 
have been further reduced during the year. Dropping interest rates and lengthening payback periods 
resulted in much larger loans. Lower rates also convinced individuals with a higher income to use 
our loans. It is not so much the unsecured loan market that has expanded but a completely new 
market that has been created. 

Capitec Bank is a real-time provider of loans. When somebody, even a completely new client, applies 
for a loan, that loan is approved or declined before the client leaves our branch. If approved, a 
new account is created and the money paid into it, available for immediate use by the borrower. 
Even private banks find it impossible to give real-time access to new credit to their best clients.


Our share of the unsecured market is 17%, up from 14% a year ago. This is rapid growth, but also means that 
we can keep on growing for a long time. Unsecured lending has become a permanent feature of the South African 
credit offering and will grow rather than diminish in importance. Our clients love the speed and simplicity of
our loans. Even for a seven-year loan, we charge a fixed interest rate meaning that the borrower can budget 
accurately knowing that the monthly payment will never increase.

BAD DEBTS

Lending is a risky business. Bad debts ("impairments" in the sanitised language of accounting) are huge. In 
the past year our major cost items were:

Net impairment charges                      R2 659 million
Employment costs                            R1 536 million
All other bank operating costs              R1 458 million
Taxes                                         R875 million
Dividends (interim plus final to be paid)     R931 million

Delinquent borrowers get more out of Capitec than our employees, the government or our shareholders.

We know that bad credit decisions are a huge risk to Capitec Bank. We are conscious of the fact that in a fast 
growing market past behaviour by borrowers is not necessarily an indication of future actions. We are careful in 
evaluating our borrowers, particularly those we grant large, long-term loans.

We react rapidly to changing circumstances. During the last few months, our arrears trend was slightly higher 
than expected, though still within our risk appetite. Credit criteria were immediately tightened and provisions 
increased.

The movement in gross impairment charges was due to:

                                       Six months to         Six months to          12 months to      
                                         August 2012         February 2013         February 2013
                                                  Rm                    Rm                    Rm

Loan book growth                                 300                   465                 1 260
Change in book quality                          (150)                  185                   (45)
Increased valuation of handed over book          (34)                    -                   (63)
Total increase in charge                         116                   650                 1 152

With a rapidly growing book, one can be deluded into thinking that provisions are adequate should one look 
at arrears percentages only to find out later that it was not the case. We try to avoid falling into this trap, 
and of the R2.9 billion charged to the income statement, R1.2 billion was added to the provision for doubtful debts 
to cater for events not yet identified, while bad debts written off increased by R675 million to R1.7 billion. 

BASEL III

The new international banking rules known as Basel III, were introduced after the banking crisis to strengthen banks. 
Basel III prescribes higher capital ratios, but also imposes measures, which will be phased in over the next number 
of years, to ensure that a bank has access to stable and long-term funding. Capitec already complies with these new 
rules. As at 28 February 2013 our liquidity coverage ratio % was 1 534% (100% required from 2019) and our net stable 
funding ratio % was 116% (100% required from 2018).

As a result of our rights issue, Capitecs capital adequacy ratio has remained high at 41% (2012: 39%).


INCREASED FOOTPRINT

We have 560 branches and have opened on average 50 branches per year for the last three years. We intend 
opening 75 new branches in the coming year, having increased our capacity to train new employees. Branches are
positioned to make it convenient for clients to conduct their banking in the normal course of their daily 
activities, with 104 branches situated in shopping malls.

Capitec Bank has 244 branches in cities and towns and 316 branches serving rural and semi-rural areas. We have 
27 branches in central Johannesburg and our most remote branches include Bochum, 85 kilometres north of Polokwane,
and Manguzi 30 kilometres south of the Mozambique border in the north-eastern corner of Kwa-Zulu Natal. At our 
smaller branches seven employees perform on average 14 000 transactions per branch per month. Our largest branches
are staffed by 16 employees that perform on average 82 000 transactions per branch per month.

We have no huge branches and would open a second or third branch in a town or neighbourhood, rather than enlarging 
our initial branch.

The ATM network has grown to 2 554 ATMs, and the number of ATMs that are independent of branches continued to grow.
During the year Capitec introduced cash recyclers that utilise the cash deposited by one client in order to provide 
cash withdrawals to other clients.

We have experienced dramatic growth in the purchase of airtime and electricity by cell phone. Last December 
6 million such purchases were made compared to 673 000 a year ago. In the same period, balance enquiries went up 
from 271 000 to 3.5 million. In future, the cell phone will be an integral part of banking.

EMPLOYEES

Capitec Bank's success depends on its employees.

We had 8 308 permanent employees at year-end and we created 1 114 new jobs compared to a year ago. Including the 
filling of vacant posts, we appointed 2 419 employees during the year. In total 28 564 applicants were short-listed 
and 6 014 applicants were interviewed by Capitec Bank's internal recruitment department.

Our approach is to make Capitec a great place to grow and develop. Dumisani Ncukana is an example of the power of 
possibilities. He has worked for Capitec since the age of 18 when he started as an ATM assistant. He has completed 
an MBA and is currently an operations manager in Gauteng, responsible for 92 branches.

Every new employee is given hands-on, practical training before he or she is allowed to deal with clients. 
Altogether 703 employees attended management and leadership courses. A total of 730 employees were promoted internally.

CAPITAL RAISED

Capitec Bank undertook a successful rights offer of ordinary shares in November 2012, which raised R2.2 billion 
in capital. We particularly appreciate the support of our largest shareholder, the PSG Group. There should be no 
need for further capital in the near future.

BOARD OF DIRECTORS

Capitec mourned the passing of Merlyn Mehl in January 2013. Merlyn was a gentleman, an intellectual and a Capitec 
enthusiast. He served on the Capitec board since before our listing and was the lead independent director at the 
time of his death.

Nonhlanhla Mjoli-Mncube was appointed as the lead independent director on 31 January 2013.

The board welcomed Boel Pretorius in November 2012. An engineer with years of experience as the chief executive 
of Reunert, he is a valuable addition to the board.

PROSPECTS

We expect economic conditions to remain difficult but believe that our client base and transaction income will 
continue to grow. Responsible management of the quality of our loan book will remain a priority.

DIVIDENDS

The directors declared a final dividend of 405 cents per ordinary share on 25 March 2013, bringing the total 
dividends for the year to 574 cents per share. There are 114 441 719 ordinary shares in issue.

The final dividend meets the definition of a dividend in terms of the Income Tax Act (Act 58 of 1962). The 
dividend amount net of South African dividend tax of 15% is 344.25000 cents per share to those shareholders 
that are not exempt from dividends tax. The distribution is made from income reserves and no Secondary Tax on 
Companies (STC) credits were applied against the dividend. Capitecs tax reference number is 9405/376/84/0.



Last day to trade cum dividend                         Friday, 12 April 2013
Trading ex- dividend commences                         Monday, 15 April 2013
Record date                                            Friday, 19 April 2013
Payment date                                           Monday, 22 April 2013

Share certificates may not be dematerialised or rematerialised between Monday, 15 April 2013 and Friday, 
19 April 2013, both days inclusive.

The Chief financial officer's review is available at www.capitecbank.co.za.

On behalf of the board

Michiel le Roux
Chairman                         

Riaan Stassen    
Chief executive officer

Stellenbosch 
27 March 2013





SUMMARISED CONSOLIDATED BALANCE SHEET
                                                    Audited           Audited
                                                   February          February
                                                       2013              2012
                                                      R'000             R'000
ASSETS
Cash, cash equivalents and money market funds     7 143 092         4 551 203
Investments designated at fair value              2 022 906         1 198 833
Loans and advances to clients                    27 934 854        16 863 028
Inventory                                                 -            42 079
Other receivables                                   140 818            57 745
Current income tax assets                                 -            62 331
Interest in associate                                   167                 -
Property and equipment                              697 512           543 121
Intangible assets                                   136 380            69 262
Deferred income tax assets                          270 995           234 242
Total assets                                     38 346 724        23 621 844

LIABILITIES
Loans and deposits at amortised cost             29 000 191        17 692 062
Other liabilities                                   759 083           718 549
Current income tax liabilities                       46 007               885
Provisions                                           28 449            24 998
Total liabilities                                29 833 730        18 436 494

EQUITY
Ordinary share capital and premium                5 330 710         2 926 435
Cash flow hedge reserve                             (15 925)           (1 920)
Retained earnings                                 2 939 240         2 001 866
Share capital and reserves attributable 
to ordinary shareholders                          8 254 025         4 926 381
Non-redeemable, non-cumulative, 
non-participating preference share capital 
and premium                                         258 969           258 969
Total equity                                      8 512 994         5 185 350

Total equity and liabilities                     38 346 724        23 621 844


SUMMARISED CONSOLIDATED INCOME STATEMENT
                                                    Audited           Audited
                                                       Year              Year
                                                      ended             ended
                                                   February          February
                                                       2013              2012
                                                      R'000             R'000         
Interest income                                   7 084 752         4 346 902
Interest expense                                 (1 662 513)       (1 022 374)
Net interest income                               5 422 239         3 324 528
Loan fee income                                   1 496 009         1 657 018
Loan fee expense                                   (343 209)         (186 360)
Transaction fee income                            2 100 594         1 360 308
Transaction fee expense                            (751 768)         (524 202)
Net fee income                                    2 501 626         2 306 764
Dividend income                                           9             1 532
Net impairment charge on loans
and advances to clients                          (2 658 923)       (1 604 190)
Net movement in financial instruments held
at fair value through profit or loss                   (298)           12 070
Other income                                            204               679
Sales                                               248 358           217 145
Cost of sales                                      (219 480)         (191 996)
Non-banking income                                   28 878            25 149
Income from operations                            5 293 735         4 066 532
Banking operating expenses                       (2 994 008)       (2 486 318)
Non-banking operating expenses                      (22 451)          (22 342)
Operating profit before tax                       2 277 276         1 557 872
Share of profit of associate                             167                -
Income tax expense                                (672 862)          (463 532)
Profit for the year                               1 604 581         1 094 340

Earnings per share (cents)
· Basic                                               1 519             1 122
· Diluted                                             1 498             1 096


SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

                                                    Audited           Audited
                                                       Year              Year
                                                      ended             ended
                                                   February          February
                                                       2013              2012
                                                      R'000             R'000
Profit for the year                               1 604 581         1 094 340
Cash flow hedge recognised during the year          (33 430)           (4 916)
Cash flow hedge reclassified to profit
and loss for the year                                14 080             7 067
Cash flow hedge before tax                          (19 350)            2 151
Income tax relating to cash flow hedge                5 345              (602)
Other comprehensive income for the year
net of tax                                          (14 005)            1 549
Total comprehensive income for the year           1 590 576         1 095 889


RECONCILIATION OF ATTRIBUTABLE EARNINGS TO HEADLINE EARNINGS

                                                    Audited           Audited
                                                       Year              Year
                                                      ended             ended
                                                   February          February
                                                       2013              2012
                                                      R'000             R'000
Net profit attributable to equity holders         1 604 581         1 094 340
Less preference dividend                            (20 783)          (19 419)
Net profit after tax attributable to
ordinary shareholders                             1 583 798         1 074 921
Non-headline items:
Loss/(Profit) on disposal of property
and equipment                                          (358)              596
Income tax charge ­ property and
equipment                                               100              (192)
Loss on scrapping of intangible assets                   19             3 048
Income tax charge ­ intangible assets                    (5)             (853)
Loss on sale of subsidiary                               58                 -
Income tax charge ­ sale of subsidiary                  (16)                -
Headline earnings                                 1 583 596         1 077 520


SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS
                                                    Audited           Audited
                                                       Year              Year
                                                      ended             ended
                                                   February          February
                                                       2013              2012
                                                      R'000             R'000     
Cash flow from operations                         2 752 408         2 406 380
Income taxes paid                                  (578 246)         (603 066)
Cash flow from operating activities               2 174 162         1 803 314
Purchase of property and equipment                 (354 706)         (315 366)
Proceeds from disposal of property
and equipment                                         4 565             1 236
Purchase of intangible assets                      (118 207)          (65 873)
Acquisition of investments at fair
value through profit or loss and
money market unit trusts                         (2 726 262)       (1 542 428)
Disposal of investments at fair     
value through profit or loss and
money market unit trusts                          1 199 399         1 344 330
Cash flow from investing activities              (1 995 211)         (578 101)
Dividends paid                                     (487 257)         (337 570)
Ordinary shares issued                            2 404 275         1 007 758
Realised loss on settlement of employee
share options less participants'contributions      (206 572)         (186 116)
Cash flow from financing activities               1 710 446           484 072
Net increase in cash and cash equivalents         1 889 397         1 709 285
Cash and cash equivalents at the
beginning of the year                             4 551 203         2 841 918
Cash and cash equivalents at the
end of the year                                   6 440 600         4 551 203


SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
                                                    Audited           Audited
                                                       Year              Year
                                                      ended             ended
                                                   February          February
                                                       2013              2012
                                                      R'000             R'000
Equity at the beginning of the year               5 185 350         3 450 513
Total comprehensive income for the year           1 590 576         1 095 889
Ordinary dividend                                  (467 460)         (317 939)
Preference dividend                                 (20 783)          (19 419)
Employee share option scheme: Value
of employee services                                  9 037            11 778
Shares issued and acquired for employee
share options at cost                              (244 422)         (221 207)
Proceeds on settlement of employee
share options                                        37 850            35 091
Tax effect on share options                          18 571           142 886
Shares issued                                     2 491 915         1 019 437
Share issue expenses                                (87 640)          (11 679)
Equity at the end of the year                     8 512 994         5 185 350



COMMITMENTS
                                                    Audited           Audited
                                                   February          February
                                                       2013              2012
                                                      R'000             R'000

Capital commitments approved by the board
· Contracted for
  Property and equipment                             42 645            85 195
  Intangible assets                                  13 119             6 744
· Not contracted for
  Property and equipment                            524 971           458 247
  Intangible assets                                 169 438           122 329

Property and other operating lease commitments
Future aggregate minimum lease payments
· Within one year                                   208 888           170 248
· From one to five years                            595 037           475 371
· After five years                                  170 639            99 694
Total future cash flows                             974 564           745 313
Straight-lining accrued                             (46 432)          (35 749)
Future expenses                                     928 132           709 564


CONTINGENT LIABILITIES

On 22 February 2013 a notice was received from the National Credit Regulator, alleging contraventions of 
the National Credit Act 34 of 2005 including in relation to initiation fees charged on one product. It is 
not practicable to estimate its financial effect or the amount of any possible outflow.  The Bank has 
investigated the allegations and has taken legal advice, and believes the matter will be satisfactorily 
resolved through due process.


SEGMENT ANALYSIS

Retail banking comprises the group's only operating segment as at 28 February 2013. An interest of 47% in 
the subsidiary conducting wholesale distribution activities was disposed on 31 January 2013 and the remaining 
28% interest is accounted for as an associate in the consolidated group annual financial statements.

Retail banking services offered include savings, deposits, debit cards and consumer loans to individuals. 
Wholesale distribution consisted of the wholesale distribution of fast-moving consumer goods.

There are no clients that account for more than 10% of revenue and transactions between segments are on 
normal commercial terms and conditions.

The segment information provided to the executive management committee for the reportable segments is as follows:

                                                   Wholesale         Intra-
                                      Banking   Distribution        segment          Total
                                        R'000          R'000          R'000          R'000
Year ended February 2013
Segment revenue                    10 681 750        248 358           (182)    10 929 926
Segment earnings after tax          1 601 253          3 328             -       1 604 581

The following items are
included in segment
earnings after tax:
Interest income                     7 084 923             11           (182)     7 084 752
Interest expense                   (1 661 743)          (952)           182     (1 662 513)
Net fee income                      2 501 626              -              -      2 501 626
Net impairment charge on loans
and advances to clients            (2 658 445)          (478)             -     (2 658 923)
Depreciation                         (195 634)          (474)             -       (196 108)
Amortisation                          (51 070)             -              -        (51 070)
Other operating expenses           (2 747 304)       (21 977)             -     (2 769 281)

Year ended February 2012
Segment revenue                     7 367 351        217 145           (912)     7 583 584
Segment earnings after tax          1 092 630          1 710              -      1 094 340

The following items are
included in segment
earnings after tax:
Interest income                     4 347 814              -           (912)     4 346 902
Interest expense                   (1 022 329)          (957)           912     (1 022 374)
Net fee income                      2 306 764              -              -      2 306 764
Net impairment charge on loans
and advances to clients            (1 604 052)          (138)             -     (1 604 190)
Depreciation                         (145 141)          (457)             -       (145 598)
Amortisation                          (27 920)             -              -        (27 920)
Other operating expenses           (2 313 257)       (21 885)             -     (2 335 142)


NOTES

The summarised consolidated financial statements are prepared in accordance with the JSE Limited Listings 
Requirements for preliminary reports and the requirements of the Companies Act applicable to summarised 
financial statements. The Listings Requirements require preliminary reports to be prepared in accordance 
with the framework concepts, the measurement and recognition requirements of International Financial 
Reporting Standards (IFRS), the SAICA Financial Reporting Guides as issued by the Accounting Practices 
Committee and also that they, as a minimum, contain the information required by IAS 34 Interim 
Financial Reporting. The accounting policies applied in the preparation of the summarised consolidated financial 
statements from which the summary consolidated financial statements were derived are in terms of IFRS 
and are consistent with the accounting policies applied in the preparation of the previous consolidated 
annual financial statements. 

The preparation of the summarised audited consolidated financial statements was supervised by the chief 
financial officer, André du Plessis CA(SA).


INDEPENDENT AUDITORS' OPINION

The auditors, PricewaterhouseCoopers Inc., have issued their opinion on the consolidated financial statements
for the year ended 28 February 2013. Their audit was conducted in accordance with International Standards
on Auditing and they have issued an unmodified audit opinion.

These summarised financial statements have been derived from the consolidated financial statements and are 
consistent in all material respects with the consolidated financial statements. The auditors' report does not necessarily
cover all the information contained in this announcement. Shareholders are therefore advised that in order 
to obtain a full understanding of the nature of the auditor's work, they should obtain a copy of their report
together with the accompanying financial information from the company's registered office.

Any reference to future financial performance included in this announcement, has not been reviewed or reported
on by the company's auditors.

COMPANY SECRETARY AND REGISTERED OFFICE
Christian George van Schalkwyk: BComm, LLB, CA(SA)
1 Quantum Street, Techno Park, Stellenbosch 7600, PO Box 12451, Die Boord, 7613

TRANSFER SECRETARIES
Computershare Investor Services Proprietary Limited (Registration number: 2004/003647/07)
Ground Floor, 70 Marshall Street, Johannesburg 2001, PO Box 61051, Marshalltown 2107

SPONSOR
PSG Capital Proprietary Limited (Registration number: 2006/015817/07)

DIRECTORS
MS du P le Roux (Chairman), R Stassen (CEO)*, AP du Plessis (CFO)*, Ms RJ Huntley, JD McKenzie, 
Ms NS Mjoli-Mncube, PJ Mouton, CA Otto, G Pretorius, JP van der Merwe
*Executive

ANNUAL GENERAL MEETING
Notice is hereby given that the annual general meeting of the shareholders of Capitec Bank Holdings Limited 
will be held on Friday, 31 May 2013. The detailed notice will be available from 2 May 2013 at:
www.capitecbank.co.za\investor relations\shareholder centre\notice of annual general meeting.

capitecbank.co.za
enquiries@capitecbank.co.za


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