Gerrie Fourie, Capitec's CEO. File Image: IOL
Gerrie Fourie, Capitec's CEO. File Image: IOL

R57 million payday for Capitec's Gerrie Fourie

By Staff Reporter Time of article published Apr 24, 2018

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CAPE TOWN – Capitec’s CEO Gerrie Fourie had a R56.6 million payout this year thanks to an 18% rise in headline earnings.

Fourie’s massive payout is due to long-term incentives and a 10% increase in his basic pay package.

The CEO’s salary can be broken down in the following way:

A R10.75 million guaranteed package

R240 000 in other benefits

A R4.05 million short-term bonus

Long-term incentive payout of R41.6 million


The bank reported an increase of R4.5 billion for the year ended February 2018. This translated to a 27% return for shareholders.

Diluted headline earnings per share increased 18% to R38.46. Capitec’s directors also affirmed a final gross dividend of 945 cents per ordinary share that brought the total dividends for the year to R14.70 per share.

The bank's net transaction fee income increased from R3.9 billion to R5.1 billion in 2018. This means that the income makes up 41% of the total net income.

Operational income increased by 13% to R17.8 billion and operating costs increased by 17% to R6.4 billion.

Capitec’s active clients rose by 15% to 9.868 million and the bank opened 30 new branches this year.

In total Capitec now has 826 branches.

Capitec’s growth in HEPS of 18% was above the 15% target and this meant a short-term incentive payment of 36.7% of the approved total guaranteed packaged for the 2018 year.

In March Capitec announced that it will absorb the increase in VAT on their most popular digital transactions in an effort to keep bank fees as low as possible for their 9.5 million customers.  

Zero VAT increases will apply to all electronic payments on the Capitec app, internet banking and USSD at R1.60 and immediate payments between banks (RTC fees) remains at R10 per transaction.  The credit card monthly fee will also remain flat at R35 per month. 

Francois Viviers, Executive of Marketing and Communications said in a Capitec statement, “In tough financial times people seek value for money, our fees are simple and transparent and clients pay only for the transactions they perform.  In addition to low, fixed bank fees they also earn the highest interest of at least 5.1% on daily balances from the first cent.”

Read More: Capitec announces zero VAT increase to a number of fees


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