Capitec takes a hit
Despite posting impressive interim earnings, Capitec shares were in the red when markets closed on Wednesday, 30 September, with investors placing high expectations on the financial group.
In its interim results for the six months ended 31 August 2026, Capitec reported R9.5 billion in earnings, a 19% year-on-year increase.
The financial heavyweight also saw headline earnings per share rise by 19% to 8,262 cents from 6,962 in the previous interim period.
The numbers indicate a strong performance from Capitec, which also increased its interim ordinary dividend to 8,262 cents, another 19% rise.
Despite the impressive interim results, the bank was trading at R4,345.55 per share when markets closed on Wednesday, a 1.79% decline from its previous close.
Denker Capital banking analyst, Kokkie Kooyman, spoke to BusinessdayTV about Capitec’s recent financial performance.
He said the bank’s share price has been high for years, which carries significant market expectations for growth.
“When a share is this expensive, there are a lot of high expectations built in,” he said. “The company has to deliver on those high expectations.”
While Capitec is still reporting strong financial and customer growth, Kooyman said the results were slightly below forecasts from the beginning of the year.
“The result is slightly less… than expectations were at the beginning of the year,” he said. “The environment in South Africa is still not very good.”
South African households have been put under pressure in recent months by rising inflation, largely driven by high fuel prices.
The high cost of fuel is not unique to South Africa, as global oil prices have surged since conflict began between Iran and the US at the end of February 2026.
South Africa’s inflation reached 5% in June 2026, a two-year high, and has since cooled to 4.4% in August, higher than the Reserve Bank’s 3% target.
Pressure from above-target inflation and high oil prices prompted the South African Reserve Bank (SARB) to raise interest rates twice this year, further dampening the consumer economy.
Along with higher interest rates, the country’s GDP contracted for the first time in six consecutive quarters in Q2 of 2026 by 0.2%.
Fast-growing value
Since it was listed on the Johannesburg Stock Exchange (JSE), Capitec has seen its share price surge past many other established players in South Africa’s banking sector.
The bank’s share price was R4,345.55 when the bell rang on 30 September, far higher than other companies such as Nedbank (R290.09) and Absa (R215.30).
Compared to the country’s other major legacy banks, Capitec consistently has higher share prices and earnings per share.
In the last five years, Capitec’s share price has risen by roughly 142.8% from R1,790.00 cents on 1 October 2021 to R4,345.55 cents on 30 September 2026.
The bank’s historic success comes after it has taken on industry stalwarts in several key areas to increase its footprint in South Africa.
In its last full-year financial results, the company had over 8,700 ATMs and 885 branches, more than any other established bank.
The group is also currently the largest bank in South Africa by number of customers, with 26.6 million active clients according to its latest interim results.
Stats SA estimated that South Africa’s total population in 2026 was roughly 63.5 million, meaning that over one-third of the country’s citizens are Capitec clients.
Along with its growth in clients, the company saw large gains in its business banking portfolio in the latest interim period.
Headline earnings for Capitec’s business banking increased by 52% compared to the previous interim period to R609 million.
Capitec share price in the last five years
Loading ...