Cape Times 2023-09-29

Its CEO said the bank managed to grow at about two million new clients every year CAPITEC Bank, the biggest digital bank in South Africa, added one million new clients in the six months to August 31, a staggeringly big number considering the weak economic environment. When questioned about how the bank managed to gain so many new clients in such a short period, its CEO, Gerrie Fourie, said in an interview yesterday that in fact, the bank had managed to grow at about two million new clients every year, for the past five years. The bank now has some 21.1 million active clients, which is a signifi- cant proportion of South Africans. He said if you add all the clients of all the banks in the country together,…

THE GLOBAL oil price rose to its highest in a year yesterday on the back of persistent supply concerns, cementing fears of yet another significant fuel price hike in South Africa. The Brent crude oil traded above $96 (R1 837) per barrel yesterday, after rising to as high as $97.80 earlier in the day, the highest level in nearly a year as price volatility remains on changing economic expectations. Oil prices rose over this month, from $86.80 per barrel to $94.50 per barrel for Brent crude, higher on reduced supply, as sharp decline in US crude stockpiles exacerbated concerns about tight global supplies. Official data showed that US crude inventories fell by 2.2 million barrels last week, much more than market expectations for a 320 000-barrel draw.…

CONSUMERS in South Africa could endure persistent higher prices for goods as manufacturers pass on the costs after producer inflation rose for the first time in August following 12 consecutive months of decline. Statistics South Africa (StatsSA) said producer price inflation (PPI) accelerated to 4.3% year-on-year in August, up from 2.7% in July. The August headline PPI print was worse than market expectations of 3.7%. StatsSA said most of the upward pressure came from the metals, machinery, equipment and computing equipment, food products, beverages and tobacco products, and paper and printed products categories. Price in the “metals, machinery, equipment and computing equipment” increased by 10.1% year-on-year, accelerating from 9% in July. The continued rise in this category was probably driven by higher demand for renewable energy equipment as companies and…

THE GOVERNMENT began the 2023/24 financial year on the back foot as public finances deteriorated from the onset in the first quarter of the fiscal year between April and June, with the national debt rising above R4.9 trillion. This was revealed in the Quarterly Bulletin released by the South African Reserve Bank (SARB) yesterday. According to the SARB, the national government recorded a cash book deficit of R47.1bn in the first quarter of fiscal 2023/24, compared to a cash book surplus of R11.5bn in the same period of the previous fiscal year. The bank said that the deficit was primarily financed in the domestic financial markets through the net issuance of long-term government bonds. “Consequently, the national government’s gross loan debt increased by 10.9% year-on-year to R4 948bn…

ATTACQ, the major development partner in Waterfall City, lifted its full year dividend 16% to 58 cents per share, a strong uplift given that South Africa-focused listed property groups have faced major headwinds this year due to load shedding and the weak economy. The JSE-listed real estate investment trust’s (Reit’s) share price reflected that strength – it gained3.04% to close at R8.47on the JSE yesterday, moving its year-to-date gain to 7.5%, in contrast to the South African Listed Property Index, which has declined 10% year-to-date. Both occupancy and collection rates traded high during the period at 92.5% and 100.7%, respectively. Distributable income per share increased 14.5% to 71.9c, with the main growth coming from Waterfall City. Distributable income growth from its Rest of South Africa operations, mainly retail centres,…

SPAR’S shares rocketed 13% higher yesterday as the market cheered the retailer’s announcement that it had finally decided to dispose of its loss-making Polish operations. Spar’s share closed11.25% higher at R113.03 on theJSE yesterday. Spar also said it estimated a loss of turnover of R1.4 billion due to the challenges of the rollout of the SAP IT system. In its trading statement for the 47 weeks to August 25, the group said: “Shareholders are again referred to the interim results wherein shareholders were advised that the board was considering various strategic business options in Poland and would announce its decision in due course. “Having evaluated and considered all options, the board believes that it is in the best interests of the group and shareholders to engage in a process…