Stassen added, "Net revenue of R1.2-billion from banking activities, comprising both loan revenue and transaction income, shows growth of 27 percent against a year ago.

"Operating expenditure grew by 26 percent, year-on-year," he said. "The growth in the loan book has led to significant increases in the resources required. A project is under way to centralise monitoring and collections. The benefit of the costs already incurred in this regard will manifest over time."

Default rates (bad debts) have improved. The total impairment on the loan book has grown by R45-million but, had the default rates stayed the same, the impairment would have grown by R70-million on the growth of the loan book alone.

Stassen said, "Given the deterioration in the economic climate, an improvement in the default rates is proof of the bank?s lending discipline, indicating that our lending criteria are appropriate and our collection systems are working. Our adjustments last year in anticipation of the changing economic climate have delivered particularly good results under the conditions."

Capitec Bank appears to be well positioned to continue its spectacular growth path in the currently challenging economic environment, as well as in the improved conditions that economists are predicting. The growth rate will continue with the roll-out of the bank?s branch network and increased advertising. The number of branches will break through the 400 mark in the current financial year and the bank is aiming to continue its rate of client acquisition into the new year.