Capitec is killing it in South Africa
Capitec has once again seen a massive rise in headline earnings per share, with the bank promising further growth ahead.
For the financial year ended 28 February 2026, headline earnings grew by 23% to R16.8 billion (2025: R13.7 billion). The group also upped its dividend per share by 23% to 7,980 cents.
“That is several years of compounding momentum – a trajectory very few can match. We are not a growth story that has peaked. We are still building,” the group said.
Its net interest income rose by 19% to R24.1 billion (2025: R20.2 billion). Interest income on lending grew by 14%.
Interest income was driven by 27% and 48% increases in loan disbursements for Personal Banking and Business Banking, respectively.
The group said that targeted offers informed by data analytics drove Personal Banking lending, while scored lending drove growth in Business Banking.
Interest income on investments increased by 2% to R9.2 billion as the average cash and investment portfolio grew by 7%.
The group said that the decline in the repo rate from 7.5% to 6.75% impacted investment yields, as did shifts toward floating-rate instruments.
Nevertheless, the group’s interest expenses declined by 8% to R9.2 billion despite a 5% increase in deposits and wholesale funding, driven by the repo rate decrease and restructuring of its savings accounts.
The group’s total loan disbursements also grew by 34% to R98.3 billion.
Its net credit impairment charge on loans and advances increased by 21%, reflecting 14% loan book growth and a credit loss ratio that increased from 7.5% to 8.1%.
Increases in credit loss ratios were seen across all businesses: business banking up to 2.4%, personal banking up to 8.2%, and AvaFin up to 53.2%.
“Longer-term products with maturities of up to 4 months were introduced in Mexico and Spain during the year to assess the markets in these countries,” the group said.
“In the second half, we noted higher rolls into arrears for Mexico, Spain and Czechia. The higher arrears rolling through the book increased the CLR. As a consequence, granting criteria were tightened.”
| Metric | Current Year | Prior Year | % Change |
| Operating Profit before Tax | R22.179 billion | R17.740 billion | +25% |
| Headline Earnings per Share | 14,606 cents | 11,912 cents | +23% |
| Earnings per Share | 14,590 cents | 11,911 cents | +22% |
| Total Dividend per Ordinary Share | 7,980 cents | 6,510 cents | +23% |
| Net Asset Value (Total Equity) | R59.513 billion | R50.914 billion | +17% |
Fully-banked customers on the rise
The group’s customer mark hit 26 million active clients during the financial year.
The group said that its digital transaction platforms, personal and business banking services, and insurance offerings have matured further.
Personal Banking clients grew 7% from 23.6 million to 25.2 million. Fully banked clients increased 12% to 9.9 million and now represent 39% of its active client base, up from 37%.
The group added that its client-first approach is grounded in simplicity and accessibility, which could be seen in Capitec starting to offer Smart ID services at its bank branches.
Despite having the largest branch network in South Africa, Capitec shunned the initial pilot that allowed Home Affairs to offer Smart ID services.
The bank has now partnered with Home Affairs as part of the government’s new expansion plan, which gives banks greater control of the service.
Capitec now has 86 branches that allow clients to obtain Smart IDs nationwide, with a particular focus on previously underserved areas.
Since its inception in March 2026, the group has successfully processed 71,000 Smart ID applications at its branches.
This article has been amended.
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