Capitec’s latest client data revealed that South Africans spend significantly more on takeaways and fuel and cut back on home maintenance, medicine, and alcohol.
The bank released this data as part of its annual financial results for the year that ended on 28 February 2023.
Capitec increased its revenue by 21% from R20 billion to R24.2 billion and its net profit by 14% from R8.5 billion to R9.7 billion.
During his presentation, Capitec CEO Gerrie Fourie gave insights into changes in client consumption behaviour over the past financial year.
It included a breakdown of where clients spent more money and where they cut back compared to the previous financial period.
The difference in spending considers the changes in the prices of goods and services and changes in consumer behaviour.
The most significant increase in spending was seen in takeaway consumption, which increased by 36% over the last year.
It is not surprising. Load-shedding impacts many South Africans when they try to make food at night, and they turn to fast food as an alternative.
Grocery spending, in comparison, only increased by 8%. Considering that food inflation was nearly 11% this year, it shows that people are buying less food than before.
The higher petrol and diesel prices were reflected in fuel spending, which increased 16% over the last year.
Capitec clients cut their pharmacy spending by 30%, which shows that they spend significantly less on medicine than before.
They also spend 13% less on home maintenance than in the previous financial year and 9% less on alcohol products.
The chart below provides an overview of the changing spending patterns among Capitec clients.