Capitec enjoys impressive balanced earnings growth thanks to diversification model
Capitec, South Africa’s leading digital bank, has announced strong earnings growth in its recent financial statements.
This includes a 30% increase in headline earnings to R13.7 billion, accomplished despite a challenging economic climate.
Key to the success of Capitec has been the diversification of its business offerings, including the introduction of business banking, value-added services, Capitec Connect, and insurance under a dedicated insurance licence.
This has enabled Capitec to maximise its substantial active client base of over 24 million – 13 million of whom actively engage with the Capitec app.
“Through our high-volume, low-margin business model, we are enabling everyone to access solutions that allow them to take control of their finances, protect their families, manage businesses, and unlock opportunities,” said Capitec CEO Gerrie Fourie.
“Our purpose-driven strategy is helping us scale sustainably and, most importantly, it is assisting 24 million South Africans to grow every day.”
The power of diversification
Fourie explained that Capitec’s diversification strategy has been a huge success.
This is thanks to Capitec’s approach of not just adding products for their own sake, but also to leverage the bank’s core strengths.
As a result, Capitec customers now enjoy unique value in areas such as credit, insurance, and accessible digital platforms and branches.
“Capitec was primarily recognised for disrupting traditional banking with its simple, affordable Global One account and accessible credit,” said Fourie.
“Building on this foundation of trust and our large client base, we’ve embarked on a focused diversification strategy to create a comprehensive financial ecosystem.”
Capitec’s success is evident in the numbers, highlighting the increasingly balanced contributions to earnings by different group offerings.
This includes:
- Personal banking – 45%
- Insurance – 25%
- Strategic Initiatives (VAS and Capitec Connect) – 23%
- Business Banking – 5%
- AvaFin – 2%
This is powered by Capitec’s integrated digital ecosystem, which enables it to easy cross-sell its customers across these products.
Capitec continues to invest in data and technology that allows it to use trillions of data points – creating solutions that yield tangible value and meet the needs of its clients.
“We have laid solid foundations for long-term growth, powered by our scalable technology and diversified business model,” said Fourie.
“We will continue to invest in technology and data to deepen our client knowledge and refine our offerings, ensuring each part of our ecosystem delivers distinct value.”
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