Enhanced Investments - Financial Portal

Voluntary Trading Statement

Published: 2024-03-08 15:10:28 ET

CAPITEC BANK HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration number 1999/025903/06
Ordinary Share Code: CPI ISIN Number: ZAE000035861
Preference Share Code: CPIP ISIN Number: ZAE000083838
(“Capitec” or “the group”)

VOLUNTARY TRADING STATEMENT

In accordance with Capitec’s custom of keeping shareholders informed,
the board advises that a reasonable degree of certainty exists that for
the year ended 29 February 2024:

-    group headline earnings per share will be between 9 049 cents and
     9 208 cents per share, representing an increase of between 14% and
     16% compared to the restated 7 938 cents per share for the
     comparative year ended 28 February 2023*; and

-    group earnings per share will be between 9 044 cents and 9 202
     cents per share, representing an increase of between 14% and 16%
     compared to the restated 7 933 cents per share for the comparative
     year ended 28 February 2023*.


The growth in headline earnings and earnings per share was driven by
strong performance during the second half of the 2024 financial year
following subdued growth during the first half. The group’s performance,
despite challenging economic conditions, can be attributed in the main
to the factors detailed below.

The 2024 financial year was characterised by strong double-digit growth
in net transaction and commission income fuelled by growth in clients
transacting digitally, and client adoption of our value-added services
and new payment channels.

Funeral insurance income increased on the back of high funeral policy
sales and client retention along with stable collection rates.

The impact of tightened credit granting criteria began to manifest during
the second half of the year and the credit impairment charge decreased
compared to the preceding half of the year. The lower charge in
conjunction with the conservative growth in the loan book led to an
improved credit loss ratio.

   Shareholders were informed in a SENS announcement published on 4 July 2023 that
    the group had implemented the IFRS 17 Insurance contracts standard on
    1 March 2023. IFRS 17 replaced IFRS 4 Insurance Contracts for annual periods
    beginning on or after 1 January 2023.

    The implementation of IFRS 17 necessitated the restatement of the group
    earnings and headline earnings per share for the year ended 28 February 2023.
    Any adjustments to the carrying amounts of assets or liabilities prior to the
    2023 financial year were recognised as an adjustment to retained earnings on
    1 March 2022.

    The group’s IFRS 17 transitional report contains detail regarding the
    restatements and can be accessed on Capitec’s website at
    https://www.capitecbank.co.za/globalassets/pages/investor-relations/ifrs-17-
    transitional-report.pdf
The financial information on which this voluntary trading statement is
based has not been reviewed or reported on by Capitec’s auditors. The
financial results for the year ended 29 February 2024 are expected to be
published on SENS on or about 23 April 2024.

Capitec’s presentation of the financial results for the year ended 29
February 2024 will be livestreamed on or about 23 April 2024 at 8am SAST.

The link to the livestreaming event will be published on Capitec’s website
at https://www.capitecbank.co.za/financial-results/

Stellenbosch
8 March 2024

Sponsor
PSG Capital

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.