South Africa has a new biggest bank

Capitec’s strong share price growth helped it become South Africa’s largest bank by market cap, exceeding FirstRand, Standard Bank, Absa, and Nedbank.

The big share price jump followed the release of Capitec’s annual financial results for the year ended 28 February 2025.

The results were exceptional. It reported a 30% increase in headline earnings to R13.7 billion and a 34% dividend hike.

Over the past five years, Capitec introduced business banking, value-added services (VAS), Capitec Connect, and insurance under its own licence.

Capitec grew its active client base to 24.1 million. Remarkably, it is now serving more than half of the country’s adult population

This was accomplished despite a challenging economic climate, highlighting the strength of Capitec’s diversified business model.

The bank’s continued investment in data and technology allows it to use trillions of data points to create solutions that yield value and satisfy client needs.

Capitec CEO Gerrie Fourie, set to retire later this year, said the results represent more than mere numbers.

“We have always believed that banking should be simple, affordable, accessible, and personal. These results demonstrate that we are achieving that,” he said.

“Through our high-volume, low-margin business model, we enable everyone to access solutions that allow them to take control of their finances.”

Investors love the Capitec story despite being expensive at a price-to-earnings (P/E) multiple of well above 30.

Grant Nader from Benguela Global Fund Managers explained that high quality and growth do not come cheap.

“It is a phenomenal company with an incredibly innovative culture that continues to deliver excellent results,” he said.

“The way Capitec’s management sees the business they have created is very different from that of traditional banks. The other banks are now trying to play catch-up,” he said.

Capitec becomes South Africa’s most valuable bank

For years, Capitec has been the biggest bank by subscriber numbers. However, it has lagged FirstRand and Standard Bank in market cap.

This has now changed. Capitec experienced share price growth of 60% over the past year, including a 30% increase in April.

It increased Capitec’s market cap to R407 billion, making it the most valuable bank in South Africa.

It is higher than FirstRand’s R401 billion and Standard Bank’s R384 billion. Capitec is also more valuable than Absa and Nedbank combined.

The table below shows the market cap of South Africa’s largest banks on Friday, 25 April 2025.