Johannesburg - South Africa's youngest retail bank, Capitec Bank Holdings [JSE:CPI], said on Friday that its client base has reached three million. This is an increase of 890 000 clients since February 2010. It also reported profit growth of 46% to R640m. Speaking at the group's annual general meeting, Capitec Bank CEO Riaan Stassen cited its "no frills" banking approach that puts its clients in control as well as an aggressive pricing approach as the core reasons for the growth. "South Africans are increasingly frustrated with the complexity of traditional banking. This has led to more and more consumers responding to our simplified banking offer, where you know what you get and you know what you pay," said Stassen.Stassen said that since warning consumers about hidden terms and conditions in its latest advertising campaign, new clients had increased. "Capitec's business model maximises the use of technology to significantly minimise admin. Time taken to conduct day-to-day banking is reduced, as are associated costs. This means we can afford to offer the lowest fees in the country." Capitec is the first local bank to trade on Sundays in major malls and stays open later than its competitors. "It is not surprising that South Africans in the know are increasingly choosing Capitec," said Stassen. Innovations like these and transparent communication such as SMS alerts that inform clients of their monthly fees and ways to save on transaction costs have helped sustain the bank's impressive growth since it launched 10 years ago, said Stassen. "Claiming transparency and innovation means nothing unless it is underpinned by real solutions. Because of this, we are constantly striving to innovate the local banking sector to deliver tools and services - which include Sunday trading - that put our clients in control through clear communication and enable them to choose how, or when, they want to conduct their banking," he said.