The businesses that powered Capitec’s R9.5 billion half-year
Capitec has reported headline earnings growth of 19% to R9.5 billion for the six-month period ended 31 August 2026.
This impressive result is a continuation of Capitec’s remarkable growth journey, which has seen it become South Africa’s largest bank by clients.
Key to its success in recent years is Capitec’s continued diversification of its business model across several key categories, including Personal Banking, Business Banking, Fintech, and Insurance.
“Every one of our South African businesses grew earnings this period, even as the global environment stayed uncertain and economic growth remained muted,” said Capitec CEO Graham Lee.
Lee added that Capitec was able to grow all these businesses despite not increasing fees for a second year running, as well as its healthy investment in technology.
Capitec’s upward trajectory shows no sign of slowing down, either, as Capitec improved its cost-to-income ratio to 36% from 40%.
This is proof that Capitec’s aggressive investment into its systems and technology stack are translating into scalable growth.
Diversified business model
Capitec stressed that it has been able to grow all its businesses thanks to strong fundamentals and disciplined execution of its strategy.
The bank continues to be built upon the foundation that is its Personal Banking business, which contributed 37% to group earnings.
Insurance contributed a further 27%, Fintech contributed 29%, and Business Banking contributed 6% to round out the diversified business model.
The Insurance business increased headline earnings by 22% to R2.5 billion, premised significantly upon the strong performances by Credit Life and Funeral Cover.
Fintech was a particularly interesting growth vector. Across the group’s Fintech businesses, Value-Added Services, and Capitec Connect, net income increased by 30% year-on-year to R2.7 billion.
This is an important achievement for Capitec, allowing it to extend its value proposition beyond the traditional banking environment.
Business Banking saw incredible growth, with headline earnings spiking by 52% to R609 million.
According to Capitec, this was supported by increased lending income, higher transaction volumes, and improved operating leverage.
Across all these thriving businesses, Capitec’s key approach remains unchanged: provide a simple, affordable, accessible, and personal financial services experience.
The future is bright
Capitec continues to grow its diversified business in South Africa and is focused on becoming the country’s leading payments provider.
It is expanding its embedded finance capabilities to bring more value to its clients – both within the banking sector, and beyond.
“We believe that if we continue to create value for our clients, they will in return continue to create value not only for our employees and our shareholders, but for South Africa at large,” said Lee.
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