Capitec CEO, former CEO pocket R62m on record share price

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Cape Town – Two directors of Capitec [JSE:CPI] have sold shares in the company with a total value of more than R60m this week.

The sales were done in three transactions.

According to a note to shareholders, CEO Gerrie Fourie sold a total of 12 875  ordinary shares for a total of R13.14m.

Non-executive director and former CEO Riaan Stassen sold 50 000 ordinary shares for a total of R49m.

Capitec’s current market cap is at R121 468 466 585.

The company’s share price has climbed by more than 50% over the past year. By late afternoon on Friday its share price was down 1.82% at R1 050.

In the view of Alec Hogg of Biznews “nobody offloads stock in your own company unless you believe it is fully valued. Or overpriced”.

Bloomberg reported in September this year that Capitec passed Nedbank as SA’s fourth-largest lender by value “to extend a market-beating rally that has made it the country’s best performing stock”.

This despite Capitec’s assets not amounting to even a 10th of those of Nedbank.

Capitec’s stock has gained in all but one of the years since it began trading in February 2002 at about R2.60.

In September Capitec announced that headline earnings for the six months to August 31, 2017 grew to R2.05bn, from R1.75bn in the previous comparable period.

Return on shareholders’ equity for the that period was 26%. Net transaction income grew by 29% over that six-month period and operating expenses increased by 20% in support of the bank’s growth initiatives.

By the end of August 2017, Capitec had 9.2 million active clients and increased its number of branches to 811. This represents client growth of 106 000 per month over the last 12 months.

In November Fin24 reported that Capitec is the SA bank that has been garnering the best buzz on social media, according to a survey by BrandsEye.

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