How much money you would have if you invested R1,000 in Capitec twenty years ago
Capitec is one of the best-performing shares in South Africa. The bank’s share price has risen by over 30,000% over the last two decades.
Capitec’s origins date back to 1997 when the PSG Group entered the microlending business by acquiring SmartFin and FinAid.
The move aimed to create a dominant position in the fragmented microlending industry, which then had 2,5000 players.
The microlending business was then spun out as a subsidiary of PSG Investment Bank and later into a Business Bank with a banking licence.
Capitec Bank was established in March 2001 and unbundled from PSG in 2003, leading to a broader shareholding structure for Capitec.
Since opening for business in March 2001, the group has gone from 55 branches and 25,000 clients to South Africa’s largest bank, with over 23 million clients.
The group’s meteoric rise has been seen in its share price, which has increased by close to over 33,000% since October 2004.
This means that R1,000 invested in the company twenty years ago would be worth roughly R338,728 today.
With inflation, R1,000 in 2004 would be worth R2,907.27 today, meaning that the share price still has grown tremendously.
Those who invested R1,000 in 2009 and 2014 would see their money worth R50,922 and R12,565.50 today.
Although R1,000 would not be able to buy a Capitec share in 2019, a R1,000 investment would be worth R2,338.40 today – hypothetically.
Year | Share Price | 2024 Share Price | % Change | R1,000 today |
2004 | R9.30 | R3 150.17 | +33 772.80% | R338 728.00 |
2009 | R62.45 | R3 150.17 | +4 992.20% | R50 922.00 |
2014 | R250.70 | R3 150.17 | +1 156.55% | R12 565.50 |
2019 | R1 347.14 | R3 150.17 | +133.84% | R2 338.40 |
Still growing
Capitec’s share price continues to rise, and the group saw a strong performance in its latest results for the six months ended 31 August 2024.
During the interim period (1H25), Capitec’s headline earnings jumped 36% to R6.4 billion.
“Our strong results demonstrate the strength of our diversified business model. We have continued to invest significantly since 2020, despite the tough economy, and have developed solutions that meet the needs of our clients,” said Capitec CEO Gerrie Fourie.
“Political stability, including positive sentiment about the Government of National Unity, normalised inflation and reduced interest rates, promote economic confidence and sets the scene for future growth.”
“We will continue to invest and leverage our scale to enhance our solutions and unlock value for our clients beyond banking.”
Net transition and commission income jumped by 19% to R6.9 billion (August 2023: R5.8 billion), while value-added services and Capitec Connect revenue grew by 79% to R2.0 billion (August 2023: R1.1 billion).
The group noted that its insurance business has continued to grow robust, with the net insurance result increasing by 14% to R727 million, contributing 11% to group headline earnings.
The bank’s funeral book also grew by 20% to 3 million active policies during the period.
“We launched our affordable and transparent life cover solution in June 2024. By 31 August, the product had already accumulated 38,526 active policies with a sum assured of R22 billion, contributing R8 million to the insurance results,” added Fourie.
A slight negative was the decrease in Capitec Business’s headline earnings, which declined by 12% to R214 million.
Nevertheless, the group said the hit for Capitec Business was due to strategic decisions, including deliberate fee reductions and changes to the merchant e-commerce strategy.
Capitec Business saw strong growth in its client base, with its active clients jumping by 30% and active merchants by 31%.
“Our business banking strategy is focused on long-term growth and market expansion. By aligning our fees with retail banking and adjusting our merchant services pricing, we’re positioning ourselves to serve SMEs and tap into the underbanked emerging market,” said Fourie.
Returning to the positives, the group’s annualised credit loss ratio (excluding AvaFin) was also reduced from 9.6% to 7.0%. (including AvaFin: 7.6%).
This resulted from several interventions by the group, such as tightening credit granting criteria during the 2023 and 2024 financial years, which led to a decline in loan disbursements.
The group increased its interim dividend by 36% to 2,085 cents per share. The key financial results for the period can be found below:
Financials | H1 2025 | H1 2025 | % Change |
Headline Earnings | R4.7 billion | R6.4 billion | +36% |
VAS and Capitec Connect | R1.1 billion | R2.0 billion | +79% |
ROE | 24% | 29% | – |
Annualised credit loss ratio | 9.6% | 7.6% | – |
Basic headline earnings per share (cents) | 4 072 cents | 5 544 cents | +36% |
Interim dividend per ordinary share | 1 530 cents | 2 085 cents | +36% |
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