Credit dispute sensationalised in media - Capitec CEO | Fin24
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Credit dispute sensationalised in media - Capitec CEO

2016-05-27 14:33

Capitec CEO Gerrie Fourie says legal action by Summit has been sensationalised in the media with "material inaccuracies".


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Last Updated at 17:33
27 May 15:34
The AGM is complete.

27 May 15:33
Meanwhile, Moody’s said on Friday that it has revised its outlook for the South African banking system to negative from stable, reflecting its assessment that banks' creditworthiness is likely to come under pressure in the next 12-18 months.

27 May 15:30
Fourie: 71% earn less than R20k a month.

27 May 15:30

The future:

27 May 15:26
Fourie: restructuring our IT to gear up and handle change and volumes we are attracting.

27 May 15:24
Fourie: Service is our main aim for the next year.

27 May 15:23

On the court case with Summit:

Fourie: It has been sensationalised in the media with material inaccuracies. We are preparing ourselves for the case and taking it from there. We do an adequate credit assessment and always check charge below the act requirements. Confident in our case. There is no need to litigate through the media.

27 May 15:21
Fourie: We are concerned about gov not capping credit life. we would like to equal the playing field. the cap is R4.5 per 1000. People are playing with R10 per 1000. They are creating risk in the segment.

27 May 15:20
Fourie: Lewis reports showed they had to bring bank statements... but we were already there. Good thing, as the playing field is now level.

27 May 15:19
Fourie: Gross loans and advances increased from 33 690 (2014) to 36 341 (2015) to 40 891 (2016). We must help clients who default on loans.

27 May 15:17
Fourie: People in SA who have cash available have gone from 18% to 9% in a year.

27 May 15:16
Fourie: Credit app - clients can see their credit score so they can understand the credit environment.

27 May 15:14
Fourie: Full effect of economic downturn will be felt in 3rd or 4th quarter of SA.

27 May 15:14
Fourie: There are four million South Africans who have secured finance. We need to get SA's 55 million South Africans access to credit to enhance their lives by building homes and through education.

27 May 15:11
Fourie says Capitec will also roll out 1000 ATMs this year, taking the total to 3000.

27 May 15:11
Capitec CEO says it will build another 80 branches this year, bringing it to 800 with an aim to reach the 1000 mark. 

27 May 15:08
Fourie: 6.5 million clients come into branches.

27 May 15:07
The directors declared a final gross dividend of 680 cents per ordinary share on 29 March 2016, bringing the total dividends for the year to 1 055 cents per share.

27 May 15:07
Fourie: Gauteng clients increased by 24%.

27 May 15:06
Capitec's client based increased by 46%.

27 May 15:05
Capitec's share price is currently 1.29% down at R593.45.

27 May 15:04
Headline earnings increased 26% from R2.5bn to R3.22bn; headline earnings per share increased by 26% from R22.09 to R27.87.

27 May 15:00
Fourie: Capitec has 11 440 employees, and we appoint 350 per month. There are 156 management positions. 804 people are on a leadership development. 570 bursaries granted. We increased staff benefits.

27 May 14:59

27 May 14:58
Fourie: Our fee structure has had a R19bn impact on the banking sector in SA.

27 May 14:55
Capitec CEO Gerrie Fourie tells the AGM: We have the best team out there.

27 May 14:54
Fourie: We know BSG is behind us.

27 May 14:54
"We will either be a small failure or a huge success", Fourie quotes Michiel le Roux as saying. "Thank you for your contribution," he tells Le Roux.

27 May 14:52
One of South Africa's five biggest banks, Capitec was recently crowned the best bank in the world by international banking advisory group Lafferty in its inaugural 2016 Bank Quality Rankings. Locally, the bank was ranked SA’s best bank for the fourth year running by the SA Customer Satisfaction Index (SACsi) - both in terms of how consumers experience its quality of service and value for money offered.   

27 May 14:52
Summit CEO Clark Gardner told Fin24 that Capitec may be the best bank in the world for shareholders, but certainly not for the consumer. "I suppose one must think that a lender who spends a fortune on building banking infrastructure yet manages to return over 54% to shareholders consistently year on year must be charging someone incredibly high margins... well that would be the consumer, who borrows from them," Gardner alleged.

27 May 14:50

Capitec Prepares for Legal Battle Over Reckless Lending Charges

Capitec told Bloomberg earlier that it has lodged its opposition to reckless-lending charges filed by Summit Financial Partners and will submit responding court documents early next month.

“We’re not payday lenders,” CEO Gerrie Fourie said in an interview in Stellenbosch, near Cape Town. “We’re confident we can win against Summit, but we’re worried about reputational damage.”

Earlier this month Summit, which helps consumers work their way out of debt, said in court papers filed in both Cape Town’s High Court and the Magistrates Court in Stellenbosch that Capitec breached the National Credit Act. Summit focused on Capitec’s so-called multi loans and its alleged refusal to supply paperwork when requested to do so by clients.

27 May 14:46
Capitec CEO Gerrie Fourie to address shareholders.

27 May 14:45
The official AGM was wrapped up in 15 minutes. Very swift. Now the CEO will address the shareholders.

27 May 14:45
91% approved of remuneration package of executive.

27 May 14:38
PWC has been re-elected as Capitec's auditor.

27 May 14:37

Watch the proceedings live:

27 May 14:35
Capitec chairperson and co-founder Michiel le Roux stepped down as Capitec chairperson on Friday morning, he announced at the AGM. He was then re-elected as a non-executive director with a 77% vote from shareholders. 

27 May 14:33
Capitec CEO Gerrie Fourie is set to give Capitec's AGM speech at the Boschendal Wine Estate outside Cape Town.

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