Capitec Bank Holdings Limited (CPI) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. It's been a great privilege to bring you the February '22 results of Capitec. I think if you look at the year, it's unfair that you need to look at it over a 2-year period. So if I look at those 2 years, since actually COVID has started, I think these 6 blocks actually stands out for what we've done. If I look at the first one, agility, the ability to manage through the whole COVID side and then also through the whole unrest. I think we as Capitec has done extremely well. I still remember, with COVID, when it broke out, for 4, 5 months, we had to say, how do we handle it? And then we actually said, how are we going to grow and how are we going to capture market share in that period. The result of all of that is that our earnings growth has been 16% since February '22 -- February '20. And I think that is a tremendous achievement, to be able to say you grew through COVID and through the unrest with 16%. I think that is a remarkable achievement. We've added 4.3 million new clients. And that shows you the trust in the brand and how strong our brand is performing out there. And the 1 that we're extremely proud of is our best digital brand that we've achieved. And with 3.4 million new digital clients that actually joined us, we've got now 10 million clients that's on our digital platform. That is for the app and USSD. I think through this whole period, the credit performance has been exceptional. The way we've made adjustments to our employers, to our credit policies opening up, closing down, I think that helped us to achieve what we have achieved. And then the most important for me is our focus on our people. You don't achieve these results if you don't focus on our people, if we don't develop our people, if we don't spend time on leadership, and we don't spend time on culture. I would like to share a short video for you actually that summarizes the whole year for us in a very short period. [Presentation]

Yes, I think we are proud about the 2 years that's gone past. I was last week in the Natal branches just to experience what is happening in Natal with the unrest, and I must say it's humbling to see how our consultants and how our branch managers and how our people have actually gone that extra mile to help support our clients and make certain that they get the best possible service that there is. I think if we look at the financial overview, yes, we have got headline earnings growth of 84%. But I think more importantly, if you look at our 5-year period, a 17% growth. And if you look at a 10-year period, it's a 23% growth. So we had a very strong growth period over those last 10 or 5 years. And I think that's reflected in these figures. I think what is positive, the 16% through COVID, to have ability to grow 16% on February '20, and then to still achieve ROE of 26%. And then I think the full dividend for the full year is ZAR 51, and then a special ordinary dividend, given our capital adequacy, that we've paid out to our shareholders. I think our shareholders must be extremely pleased with our results, and then also the dividends that we're paying out to them. If I look at what is driving our results, I think the first 1 is our loan sales. In the second half of last year, we've opened up the loan sales, and I will unpack that in detail. But you can see our sales going up from ZAR 29 billion to ZAR 44 billion. So very strong sales that's coming through. We've also seen that in Business Banking, where in the last 6 months, we had very strong demand for credit and supplying that particular credit. I think the second slide is then on our other income, or the net transactional income to our operating expenses. You've all seen in our operating expenses, there's abnormal bonus that was paid out to our staff. There's also the BEE deal. So if you take that in consideration, that ratio is plus or minus about 100%. So again, we're covering basically all our OpEx with our transactional income and our other income streams that we've got. Then you can see in our provisioning slide. If you look at our total provisioning to our Stage 3 and 2 coverage, we're at 100% -- 103%, in line with previous years. It's just February '18 to '19, which looks odd, but that's clearly the difference between -- or moving to IFRS 9. And then capital adequacy, I've spoken about it previously, but we seem to have a very strong capital adequacy of 36%. So I think, overall, strong results and that actually gives you the indication where the growth is coming from. If we unpack it further. Net lending income, investment and insurance, or credit income is up 13%; then transactional income, 21%; and then funeral, the product is still doing exceptionally well, and I'll unpack that 39%. So our income from operations up 17%. Then credit impairment charge. We've dropped that charge of ZAR 4.3 billion, and that's purely the COVID side that's been released. So that gives you a net income growth of 55%. And then on operating expenses were up 33%. I'll unpack that further. But if you take out the bonuses plus the share appreciation plus the BEE scheme, that operating expense is only growing with 11%. So I think a very strong performance, and then 84% growth on headline earnings. We're going to unpack all components of that, so you fully can understand where the growth is coming from. The first 1 is, if I look at our interest income, our interest income actually declined by 1% to ZAR 13 billion -- ZAR 13.2 billion. But the big driver there is actually the change in interest rates. As you all know, the repo rate, there was drop of 2.75%. So there's a bigger component of flexible interest rates in our book. There's a big swing from term loans to the Access facility as well as the credit card, and then we've brought in Business Banking as well. So we see that change taking place. You must remember, if you look at the NCR rates, the term loan max rate is 25%, facility is 18%. So that gives you an indication. So it's purely a factor of the interest rates that has dropped, and then also the swing in the book, but that will -- I think we'll see the benefits of capital advance growth that will come through in the next couple of years. Then on our investment portfolio, strong growth of over ZAR 1 billion, 34% up. I think the first point is, if you look at that dotted line to the right, you'll see our core savings and fixed-term savings has grown still very strongly. That shows you the trust in the brand. Also, funding slightly down, but it's in line with our philosophy. We will be in the market the whole time. but we've got very strong growth in our savings side. And then on our investment side, in our investment portfolio, that's the component that we're actually investing. You see strong growth, but there's also a switch being taken. We've taken a decision in October '21 to go into government bonds because your yield is much better there. You're about 9.6%, 9.7% versus treasury bills at about 5%. So we've invested an extra ZAR 12 billion we've invested in government bonds, and that's where you see the kicker in our investment income. I think the 1 that has performed exceptionally well is credit life. Just taking you back into history. When COVID happened, we were very uncertain what's going to happen with retrenchments. We were very uncertain what's going to happen with death. So we increased our premiums to ZAR 4.50 for nongovernment and ZAR 4 for government. And you could see the claims coming through, and then we've reduced it again in August '21. So we've already reduced to ZAR 4 and ZAR 3. And I think given the performance that we're seeing, yes, we're busy currently sitting and saying, how should we reduce our prices even further. But I think very strong performance on the credit side, but retrenchment is coming down and death claims also coming down. And then I think what is important is that from May '21, we basically self-insured. So credit insurance contribution is ZAR 1.5 billion to the book. And then funeral. The funeral book has grown from about 1.3 million policies to 1.7 million policies. We've issued 1.2 million new policies. So the contribution of funeral is ZAR 900 million or close to ZAR 1 billion. So yes, I think overall, the funeral policy has done exceptionally well. You can see the average premium is also up, and our collection rates is up from 85% to 87%. I think just the important 1 is the persistency ratio. We always reflected the persistency ratio over the total book, and then it was around about 42%. We're now reflecting it to industry standards where we reflected over the last 12 months, and you can see the performance there of 58%, persistency of our funeral book. Then the transactional side, yes, we're still continuing very strong growth. If you can look over a 5-year period, 21% growth. 10.5 billion of our income is now coming in from the transactional side. That is fueled by very strong client growth. In the video, we've reflected on the 18 million clients. There's a very strong switch to digital. So our income in branch fee incomes is actually coming down because it's much lower cost to the client to actually go on to digital. I'll unpack pricing, but our pricing has been very lean and well below inflation. And it's interesting if you look at the net transactional income per client, it was ZAR 43 in February '18 and it's now ZAR 48. So we are getting more and more transactions coming through from our clients, and that's also a reflection of the better quality clients that is coming on to book. If we look at bad debt or our provisions, I think no surprise, we've released ZAR 4.2 billion on it. So the ZAR 7.8 billion has dropped to ZAR 3.5 billion. And then what we've kept is, our economic forward looking, we've kept at ZAR 3 billion. It was ZAR 3.2 billion. And the ZAR 3 billion is purely the uncertainty that we still see in the market. There's the whole impact on oil, inflation, food prices. There's the whole supply chain. We see what is happening in China given their lockdown and very strict lockdowns. So we've kept our economic forward-looking provisions at ZAR 3 billion. If we unpack that further, just to show the way we provide, I think if you look at your expected credit loss ratio on the total book, you can see on the retail, it used to be around about -- and that's the light blue line -- it used to be around about 20%. It's gone up with COVID to 27% or 26.9%. And you can see it's dropped now back to 23% -- 23.6%. So that shows you that we are still prudent in our provisioning models, and then Business Banking, you're seeing has moved from 5.9% to 6.1%. And that's probably more driven by our book that swinged slightly now to unsecured lending in that space. But overall, the group in totality dropped from 23.8% to 20.9%, but still higher than the February '20 figures. If I look at what we're seeing in the credit space, I think this is quite an important slide. If you look at our people that's earning more than ZAR 15,000 per month on net inflow, so that's after tax, that is actually the salary that is falling into his bank account, so it's after all deductions. You can see the contribution to our cap-out or gross loans and advances was 29% in February '18. It's now 52%. But more importantly, people earning more than ZAR 25,000 has moved from 5% to 19%. So very strong growth in people earning more than ZAR 25,000. Remember, the average salary in South Africa, before tax, before deductions, is around about ZAR 22,000, ZAR 23,000. So that gives you a sense of what the population looks like. But I think overall, 52% of our book is now -- or our cap-out that we're giving is now above ZAR 25,000. If we look at what is the quality, what is the stress levels we're seeing, and maybe just to explain this slide, is that we're looking at cash stress. So that is after a person's salaries come on, after all these deductions, all these electronic outflows, what is left for the person to live. And we say 20% is a stress level. So if it's below 20% -- we reflected on the slide, so if I look at government, and if I look at February '22, 7% of our government people has got a cash stress of more than -- or has got less than 20% left. Now what you can actually see here is government has actually been stable through COVID, and we all know everyone has kept their jobs. Salary increases were lower than what they expected. And then mining, given what's happening with resource prices has gone up, so you can see the levels there stayed the same. Where there's been improvement is especially on travel and leisure, that's gone up from 28% to 11%, and then manufacturing 12% to 9%. So we're actually seeing a bit of cash stress level in our client base. I think what is important also is just to understand the way we manage credit, another word, agility. We've made 431 credit changes last year. So it gives you about 3, 4 -- probably about 5, 6 per month that we've made. And the unrest taking place, we've adjusted 6,300 employers, where we've first closed down and then opened up. And that's just the ability in our credit policies to open up and close as we see stress. But I think this gives you a very good indication that the stress levels in our credit book is at very acceptable levels. Interesting, mining and government is around about 50% of our book. Mining is about 10%, government is about 40%. If we look at new credit clients, what is that looking like? I think what is very encouraging is in this year, we acquired close to 500,000 new clients. A new client's definition is totally new to Capitec, or he hasn't taken credit with us at least for the last 6 months, and he's now taking up credit. So I think very strong performance of 500,000 new clients. You can see the Access facility, that has acquired new clients. If you compare February '20 to February '22, that drop is purely because we climbed out of the 1- to 6-month market. So we're not giving any loans now between 1 and 6 months. So there's a big client base that we have excluded now in our client base. But I think overall, it gives you a very strong quality performance in our book. If I look at the Access facility, this product is doing exceptionally well for us. It's quite interesting if you look at the Access facility, the credit card, is that 44% of our loans now is being on a continuous basis, meaning that the client is not coming into the branch, they're picking it up. Access facility, if you repay, you've immediately got access to it again. And if you look at the Access facility, you can see the drive there in the above ZAR 25,000 as well as, let's call it, above ZAR 15,000, big client growth in that particular areas. The loan has been increased from ZAR 250,000 to ZAR 500,000 because this is mainly being used in the building space, and that's 20% of the limits where the grant is between ZAR 250,000 and ZAR 500,000. We see very conservative behavior of our clients, only a utilization of 59%. And then 40% of our clients is actually deciding to settle this much quicker. I think what is important is the daily risk management of this. We've got the ability to reduce the term or the rand value or actually close the facility in totality if we see great performance of a client that is not in line with our credit policy, and 12% of our clients, we've reduced the limit on the book. Then operating expenses. I think the surprise to everyone is the cost-to-income ratio of 47%. Let me first start out by saying our aim is 41%, and actually, if you look at the higher incentives that have been paid out to our people, if you take the variable pay incentive, there was an extra ZAR 886 million that's been paid, as well as in the share price that's gone up from roughly about ZAR 1,000 to ZAR 2,000, so that's ZAR 248 million. That equates to about close to 4%. So if you take that 8% of what the bonus has done, 4% of that is due to the bonuses to our staff. And in our BEE scheme, that we're extremely proud of, is extra 7%, so that's 3%. So that actually brings that 8% back to about 2%, which is the standard. So basically, the way you can also look at it, we've set our staff to say, if we look at bonuses, we look at over a 2-year period, we've grown with 16% over a 2-year period. And we've actually, over that same period, despite actually what we would have paid normally if we've grown with 16%. Quite interesting, I said to you that I was in Natal last week, and it's interesting what the shares that we've given to our staff has done. By talking in the morning, we've got a start-up meeting at 7:45 to 8:00. We called it a shareholders meeting. And the way they talked and the way they behaved, they were talking the whole time of what is best for the shareholders. So it's quite interesting what we've created with the whole scheme. But we're quite comfortable with the operating expenses. There's a big focus still on digital and IT people, and those are expensive people. But overall, I think our operating expenses is within our expectations. Then if I look at when we started the bank, we said that we want to bank 96%, 97% of South Africans, we want to bank everyone. And I think if we look at the products that we've launched, the full product suite that we've got in our pricing, we definitely now can serve with the bank for everyone, and I'm going to unpack that in different components. I think the first 1 is client growth. It's quite scary to think about February '17, we had 8 million clients. So we nearly added 10 million new clients, 9.4 million clients that we've added over this period. And in the last 2 years, we've added another 4 million. You can see that graph is going upwards. Then on the digital side, the area that we're extremely focusing on, we've moved from 6.7 million clients to 10.1 million clients. So very strong growth in that. And we're seeing a very strong growth in the clients above ZAR 15,000. And if we look at our savings clients, those clients has got a fixed-term saving with us or a flexible saving with us. That's gone up from 5.9 million to 7 million clients. And then our banking clients, and we call this quality banking clients, so the client must have an inflow of more than ZAR 3,000, the client must have debit orders, and the client must have a digital transaction that is performing. That's gone up from 4 million to 4.6 million. If we exclude the digital transactions, we're probably more in the region of 6.7, 6.8 million banking clients, but we need to drive the client behavior to a digital platform. And then funeral, you can see quite scary, February '19, we had 400,000 clients, and now we've got 1.7 million clients on funeral. And then credit, credit has, for the first time, gone above 1 million, and we're now at 1.2 million clients. Again, that question or perception, everyone thinks the whole 18 million clients is getting credit from us, but it's only 1.2 million clients from us. I've spoken about the banking solution. And I just want to unpack that you fully understand what we've added in the last couple of years. As you all know, with Global One, you open up a Global One account, and then you've got access to the 4 components, which is Transact side, Credit and Insure. So it's not that you actually apply for a product, you get everything under Global One. So if you look at Transact, I think the most important a client can either have a credit card or a debit card, but he is getting interest from the first cent that he actually puts in his account. The current rate is 2.75%. And then what we've added is now you can actually sit at home and you can open your account on the app. You immediately have got access to transact because you immediately get a virtual card, and then you've got free card delivery on your debit card and your credit card that is available for yourself, and that card gets delivered within 2 to 3 days to yourself. And then the 2 that I'll unpack later on that I'm excited about is the Scan to Pay and Pay Me, and then the 1 that we don't talk a lot about is track my spend. So on your app, as you're spending, it's tracking on what you have spent to give you an indication of what you spent on food, what you've spent on housing, et cetera, et cetera. So that puts the client again in control. Then our savings plans, there's 4 savings plans. I said 2.75%, sorry, it's actually 3%. It's the last adjustment that's gone through. But the client has got 4 savings accounts, he's got a tax-free savings account, and then also a Live Better savings account. Now the Live Better savings account attracts 1% higher interest rate, so they're getting 4% on that, encouraging our people to save. And then you can create the savings plans on your app. And then lastly, we've got access to easy equities, where a person can do trials on equities. We've got about 250,000, 270,000 clients that's making use of easy equities with strong growth in that particular side. Then on Insure, I think this is a space where we're going to focus on quite a lot in the future. You can see what we've got is the credit life insurance and funeral plan. Now I believe there's opportunities to grow that particular area. And then Credit, credit has changed quite a lot. We're giving now credit up to ZAR 500,000. You've got a Capitec home loan. There's the purpose lending that's coming through. And you've got the estimate. So it doesn't matter where you are, you can actually do a quick estimate and see that if you qualify and for what do you actually qualify? And then what we've launched in this year is Live Better, and that's the 1 that I'm very excited about and I'll unpack that further. But we've got partners like Shell, Dis-Chem, Bolt, et cetera, et cetera, where people are getting discounts when they're actually performing those particular transactions. There's sweep your savings into your savings account, and then there is a round up that's coming through, and that is actually cementing for me all 4 of those particular areas together to create value for our client. I think what is important is, if we talk Live Better is, we have taken the loyalty side and tried to say, don't make it till you've simplified it. So there's no monthly fee to belong. Every Capitec client just needs to go in his app and he switches it on. There's no fee on it. And every client gets exactly the same. Typical Capitec tradition, there's no differentiation, there is no tiers. Everyone gets exactly the same benefit if they transact on Live Better. This for me is an interesting slide. It's just the value that we've created. And I think it's sometimes good to actually reflect back. If I look at -- you can see basically right through our fees of February '18 to February '22. You can see we've got a reduction in fees. But even if you look at the cash fees, we've increased the cash fees over 14% and inflation over this period is actually 26%. So overall, we've created tremendous value for our client by reducing the fees, but then also switching clients away from branch to a digital platform to make it much lower. How do we service our clients? Do we only service our clients through our branches? Do we only service our clients through our digital? I think there's 4 channels that we look at our client base, there's 18 million clients. I think on our physical challenge, we've got 853 branches. There's 4.5 million clients that are still visiting the branches. I was in what we call red branches, that's branches that's under severe pressure given their client base in KwaZulu-Natal. And the message I came back with is, we will definitely open up more branches in South Africa to attract our clients and give our consultants the ability to sell the full product range. Self-service transactions. That is the service station that we've got in the branch. Currently, a branch has only got 1. We're performing 21 million transactions a year on that. That is going to be enhanced to 3 stations per branch. And we're enhancing the type of transactions that you're doing. So what you will typically find, the front end of the branch will be self-help and the back end will be where we will assist you and the consultant will help you to sell Global One, and then 7,200 ATMs. Our call centers, there's 7.9 million calls that we're handling per month or 34 million minutes that we're talking to our clients. We've got 1,200 call center agents that are working with our clients making certain that they understand what is happening with them. And then the 1 that we actually don't talk a lot about is Capitec Direct. That's our call center, which actually, if you want to apply for a loan and you don't want to do it on the app or you don't want to do it in branch, you can find Capitec Direct. Capitec Direct book now has about ZAR 4.2 billion. So there's strong growth in that particular area, and it's also helping us with the whole conversion site. So if you want to switch your debit order, they will assist you completely to switch your debit order from wherever you are banking to ourselves and keep you informed as those switches are taking place. Digital channels and the app. The app has got 6.6 million active users. That is where we're actually getting a financial income from those clients of 6.6 million, but the people that's actually using the app is over ZAR 7 million. And there's 4.5 million users on the platform. And you can see the amount of digital transactions that we are performing. Our system currently can handle 12 million transactions per second. And we've gone up to about -- the actual figure has gone up to about 6 million transactions per second. And then, you've got physical channels, you've got call centers, you've got the digital channels, but you need to engage with your client base. And we've sent out 275 million SMSes, emails, social media posts, et cetera, et cetera, to educate our clients and to inform them exactly where they are. So a very strong focus on the accessibility of the client. What have we seen? We've seen a massive shift away from cash, or you can see cash is quite constant, basically flat, and then very strong growth in the card and digital side from 81% to 84%. So very strong growth, 26% on our transactional volumes. And especially the digital side, that's now over 1.3 million transactions that's taking place that is very encouraging. Then on the app itself, digital payments. Digital payments for me is a very big focus area. And I believe that's where the future is. The 2 exciting ones that we've added were Scan to Pay, which is interoperable with all major QR codes. So if you want to pay on a QR code, you can just use Scan to Pay. You take a photo and you pay. It's my favorite way of paying these days. And then Pay Me, that is where every single person that has got the app has got his own QR code, so it's your personalized QR code. So if I want to pay you, I'll just bring the phone close and take a photo of your QR code and I can pay you. From the end of April, we will be able to send you the QR code. Capitec to Capitec, we'll send you the code, you click on to it and you can pay. So you're taking all the risk away of creating a beneficiary, wrong accounts, wrong amounts, et cetera, et cetera, by sending it. And then from July onwards, it will be interoperable with all banks, and you will be able to send your QR code to somebody that banks with Standard Bank, FNB or whoever. And then the other 1 that for me is very strong is RTC. That's real-time payments. We've gone in pricing there from where the market is around about ZAR 40, we've gone in this year, we're at ZAR 6.50, to make it easier for people to pay something. So if you want to buy a, you can immediately do a payment immediately, it reflects in the person's account on the other side. And we've got now a market share of 40% in that particular area. Then investing in people, probably the most important in our lives. As you all know, our culture goes about client, people and delivery. And we're driving our culture right through the organization in very simple terms. Culture is the way you operate, that you make decisions without really thinking, because it's in your DNA. So that DNA of what is it for the client, what is it for our people, and what is it for our delivery is entrenched in everything that we're doing. And what we've done in the year that's passed, around each 1 of the culture, people and delivery, we've unpacked 5 leadership traits that we expect every single person to perform and lead their people in a certain way to make very certain that people understand the why. Why they are doing things, and what is the strategy behind it? Autonomy and ownership is the whole CEO principle. That's where we believe every single person in the bank must be a CEO. They must operate like a small business owner. The C stands for client, the E is energy and the O is ownership. So that's a very strong driver for us. And then we've restructured our delivery teams with full autonomy, where they're taking accountability from a product from end-to-end with a business owner and a product head to go through it. Talent acquisition and development. That is, I think, ongoing. We've brought in over 1,000 IT and Data Science people in last year and that will continue. So we're still growing. We had an executive meeting yesterday and the biggest headache we're sitting with is, how do we fill all the vacancies we've got for the budget, so that we can deliver on our business plans. And then hybrid working, I think the new challenge in the world is the flexibility to work from home, working from office. Our philosophy is that you need to spend 60% of the time at the office, so that we can create and encourage that whole teamwork. I think what is also interesting is that 80 branches of ours is supporting Capitec Direct. So Capitec Direct, if we've got overcapacity at that particular area, those branches, and the branches that's underutilized, we can use those people to assist. While the unrest was taking place, a lot of consultants, which branches were not functional, were able to work in our call centers and in different functions in the bank. So that whole model is a big focus area for us to make certain we've got the flexibility going forward. Then I think CSI, a big other area of ourselves. I think those 4 blocks sum up what we do in CSI. The first 1 is our supporting our communities. The Capitec policy is that every person that is involved in the communities gets 3 additional days leave. And then for every rand that they collect, the company gives ZAR 2. And that's to make certain that our people are involved in the communities, they support the communities, and they help to make certain where there is a need that we can actually go in. And then we support disaster relief very strongly. Financial education has always been a big drive. We've got 5 courses to say, how do you improve your financial lives, example, budgeting, how to buy a house, how to buy a car. The Capitec Foundation's focus is very strong on maths at high school. We've got 1,300 learners that we sponsor -- sorry, we've got 3,000 students that we sponsor, we've got 1,000 teachers that we sponsor, and 33 headmasters to support our whole drive on maths, because I think there's a big shortcoming in South Africa. And then we're very strongly involved in enterprise developing via Imvelo that we invest in start-up companies. Business bank. The 1 that everyone talks about or asks about, when is what going to take place. We're very happy with the profitability of Business Bank. The headline earnings is up to ZAR 174 million. If I take out the bonuses and I take out the BEE deal, then the headline earnings is ZAR 220 million, and that's from a loss of ZAR 1.5 million. Still very strong growth in client numbers. We're getting about 1,500 clients per month. That's with no advertising, no support. It's just purely word of mouth. Our big focus is on our client processes and client experience, and then rebuilding the bank, and I'll talk about that when I'm talking about the future. And you can see on the credit performance, we've seen very strong performance. I think everyone was quite scared about SMEs and what COVID and the unrest is going to do to the SME side, we've actually seen that our SME has actually been very resilient and has actually stand up through these economic times. If I look at the future, and these are trends that we not see as Capitec, but that is, if you read things about where the future is going with banking, what is going to happen? I think the first thing is banking as pure banking is going to change to financial services. So how do you offer financial services in totality? And then these are the 4 big areas that 1 needs to look at. I think in South Africa, specifically, the war on talent, it's quite interesting that what we're seeing, the banks, the retailers, everyone is suddenly looking for data and Data Science people. And we're seeing a very strong shortage in talent. That is fueled also with people now saying they're working in overseas. But also what's happening now is it's quite easy to work in London, but you actually sit in South Africa and you work for a London company or Netherlands or wherever. So I think there's going to be quite a war on talent. The 1 that's for me very interesting is the side hustles and gig economy. It's interesting, if you look at -- and what that is, people that's got a salary, then they've got other additional incomes or they focus on certain other businesses. We've just done an exercise on 18 million of our clients. And 2 years ago, we had 100,000 clients that earned more than ZAR 3,000 per time, 5x a month. Why we've used 5 is because your weekly people are getting paid on a weekly basis. So what we're saying is, if you earn more than ZAR 3,000 per time, more than 5 times, that was about 100,000 clients, and that is now up to about 1 million clients. So what we're seeing is a strong multi-income component that's coming through. If I look at connections, I think everyone knows, everyone wants to be connected to everything, social media, metaverse, et cetera, et cetera. So I think that is going to be a drive. And then omnichannel, the ability to engage with all brands, or the brands can engage on all platforms with our client base and with all people. E-commerce, the whole drive on payments, wearables, APIs, digital currency, cryptocurrency. We've seen what has happened there. And I think the 1 that we're very excited about is the ability we have to create platforms, ecosystem and super apps. We're seeing quite a lot of opportunities, especially in the ecosystem side we're seeing. And then I don't need to talk about data. Everyone says data is the new oil. We personally believe or Capitec believes very strongly on it. AI is a big focus for us. And I think what has gone in and come in there, and we've seen what has happened lately as the whole cybersecurity side that is getting more and more traction and more and more focus in those particular areas. So this is just some of the key trends that we're seeing worldwide. What are we going to focus on for this year? I think the first 1 is the Live Better. We have launched from the first of March, a 0.5% kickback on all debit card transactions. That is, if you -- what we call, 1, 3 and 5. So you must have 1 product of Capitec, you must have 3 recurring payments, and you need to do 5 app transactions per month. So you will get 0.5% back on your debit card and 1.5% back on your credit card. Interestingly, what has happened is, we had 4.6 million clients on Live Better by the end of February. And since we've driven this whole process or the new launch offers, our client base has grown over ZAR 1 million on Live Better. We've set ourselves our objective of 8 million clients by the end of the year, but I think we can surpass that level. I think there's 2 big focus areas that we want to achieve here. The first 1 is takeup of the full product range of Capitec. And then for me, the most important is that first of wallet, so that whenever -- every person has got 2 or 3 bank accounts, but that your Capitec card is the first 1 that's coming out of the wallet. I think what is also interesting is that the Live Better Day. And we've seen in social media, on Sunday, a very big positive response of our client base that is happy with the fact that the payout is on the 10th. So we're making the 10th of every month the Capitec pay date of Live Better Day. And the reason for that is it's exactly in the middle of the month and suddenly you're getting incentive on that particular side. So I'm very excited about this product and what that is going to do. And then if I look at what we're focusing on for the next couple of -- or this year and probably for the next 5 years as data, we're now in the process of moving everything to the cloud. In April '23, we need to be 100% in the cloud. That would give us increased capabilities on machine learning and understanding our models and understanding our clients and make certain that we engage better with our clients to optimize our client base. I'll give you an example. Our provisioning model was used to run on the old platforms between 4 and 5 days on the cloud, it's now between 3 and 4 hours. So it gives the capability for our staff to actually more spend time on the quality and analyzing the figures than just running the numbers. Credit. I think the big switch that you will see going forward is where we've always looked at the guy must have a salary slip to provide credit, we're starting now to non-salary and multiple income earners. So that is a big focus for us. It's also in line with what we're doing on Business Banking, where we believe that you need to be able to provide credit to people and you just look at the turnover. So on the credit -- on Business Banking side, a big focus on other income as a market. And then also, we've seen with COVID, how we reward people for certain behaviors, and we will enhance that particular area. Digital Commerce. Payments, you can see what we've done on the QR side. It's in the beginning, a very strong focus to take people away from cash and to drive people to either using card or using the app. And then lastly, on Business Banking of the future. I said we will relaunch in October. And we will have all our systems and process, et cetera, et cetera, ready by October, November. Then we want to test, and then early in the New Year, we want to launch or rebrand to Capitec Business Banking. So if I look at the future, I'm extremely optimistic. There's quite a lot of new products, a lot of new innovations that we're working on. And I'm excited about the next years. So from my side, thank you very much. On the last point, it's also Andre's last financial results that I have presented to yourself. And just from my side and all the executives, thank you very much for your 22 years of contribution. I think he's done an exceptionally good job and well done for the future. I'll open up now for questions.

Okay. We haven't received any questions. So we'll probably address questions in our sessions with all the different asset managers and the media today. So thank you very much from our side. Thank you.