Capitec is killing it
South Africa’s biggest retail bank by clients, Capitec, says it expects earnings to shoot up by more than 22% for the half year period ending 31 August 2025.
In a trading statement to shareholders on Wednesday (13 August), the group said that it expects headline earnings to jump between 22% and 27% to 6,764 cents and 7,041 cents per share, respectively.
This reflects a stellar performance across all its business units, it said, with all businesses contributing positively to the expected financial results.
“During the current period, loan disbursements increased and the annualised credit loss ratio remained stable,” it said.
“Together with growth in the net investment portfolio, this has led to an increase in net interest income after credit impairments.”
Capitec said it has recorded growth in net transaction income and commission, and is seeing even more growth in value-added services and income from Capitec Connect.
This, as the mobile service continued to see active client numbers increase and transaction volumes increase.
“The simplification of transaction fees and the merchant commission structure, as well as the reduction in transaction fees during the period, has made a meaningful difference to our clients,” it said.
The banking group also noted that its profits have been boosted by its funeral insurance businesses.
All funeral insurance policies sold from 1 November 2024 were no longer subject to a profit-sharing agreement, and the additional profit, combined with strong sales has driven growth in net funeral income, it said.
The group’s life insurance business, Capitec Life, is now operating under its own licence. It manages over 3.3 million active funeral and life cover policies, insuring 15 million lives.
The results for the 6 months to 31 August 2025 will include 6 months of income from the Avafin Holding Limited group compared to 4 months in the 6 months ended 31 August 2024.
The expected surge in profits continues the bank’s incredible growth trajectory.
For the financial year ending 28 February 2025, the bank reported a 30% increase in headline earnings to R13.7 billion.
This was accomplished despite a challenging economic climate over the past few years, and continued strain on banking clients.
The interim results will also be the first set of financials presented by the group’s new chief executive officer, Graham Lee, who took over from former head, Gerrie Fourie, in July.
Fourie oversaw a period of impressive growth at the bank, which started out as a microlender in 2001 and grew to a financial powerhouse worth R430 billion in 2025.
He took up the role of CEO in early 2014 and over a decade pushed the bank into new markets, launching credit, insurance, mobile and business banking services.
Following his early retirement, Lee is now anticipated to carry on the bank’s leading position—with the first set of results showing solid footing for the new era.
The group will publish its interim results on or around 1 October 2025.
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