{"id":821981,"date":"2025-04-24T08:39:08","date_gmt":"2025-04-24T06:39:08","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=821981"},"modified":"2025-04-24T08:39:13","modified_gmt":"2025-04-24T06:39:13","slug":"capitec-enjoys-impressive-balanced-earnings-growth-thanks-to-diversification-model","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/industry-news\/821981\/capitec-enjoys-impressive-balanced-earnings-growth-thanks-to-diversification-model\/","title":{"rendered":"Capitec enjoys impressive balanced earnings growth thanks to diversification model"},"content":{"rendered":"\n<p>Capitec, South Africa\u2019s leading digital bank, has announced strong earnings growth in its recent financial statements.<\/p>\n\n\n\n<p>This includes a 30% increase in headline earnings to R13.7 billion, accomplished despite a challenging economic climate.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/www.capitecbank.co.za\/financial-results\/2025\/?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_campaign=April+2025\" target=\"_blank\" rel=\"noreferrer noopener\">Click here to view Capitec\u2019s 2025 financial results.<\/a><\/strong><\/li>\n<\/ul>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>This has enabled Capitec to maximise its substantial active client base of over 24 million &#8211; 13 million of whom actively engage with the Capitec app.<\/p>\n\n\n\n<p>\u201cThrough 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,\u201d said Capitec CEO Gerrie Fourie.&nbsp;<\/p>\n\n\n\n<p>\u201cOur purpose-driven strategy is helping us scale sustainably and, most importantly, it is assisting 24 million South Africans to grow every day.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The power of diversification<\/h2>\n\n\n\n<p>Fourie explained that Capitec\u2019s diversification strategy has been a huge success.<\/p>\n\n\n\n<p>This is thanks to Capitec\u2019s approach of not just adding products for their own sake, but also to leverage the bank\u2019s core strengths.<\/p>\n\n\n\n<p>As a result, Capitec customers now enjoy unique value in areas such as credit, insurance, and accessible digital platforms and branches.<\/p>\n\n\n\n<p>\u201cCapitec was primarily recognised for disrupting traditional banking with its simple, affordable Global One account and accessible credit,\u201d said Fourie.&nbsp;<\/p>\n\n\n\n<p>\u201cBuilding on this foundation of trust and our large client base, we\u2019ve embarked on a focused diversification strategy to create a comprehensive financial ecosystem.\u201d&nbsp;<\/p>\n\n\n\n<p>Capitec\u2019s success is evident in the numbers, highlighting the increasingly balanced contributions to earnings by different group offerings.<\/p>\n\n\n\n<p>This includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Personal banking \u2013 <strong>45%<\/strong><\/li>\n\n\n\n<li>Insurance \u2013 <strong>25%<\/strong><\/li>\n\n\n\n<li>Strategic Initiatives (VAS and Capitec Connect) \u2013 <strong>23%<\/strong><\/li>\n\n\n\n<li>Business Banking \u2013 <strong>5%<\/strong><\/li>\n\n\n\n<li>AvaFin \u2013 <strong>2%<\/strong><\/li>\n<\/ul>\n\n\n\n<p>This is powered by Capitec\u2019s integrated digital ecosystem, which enables it to easy cross-sell its customers across these products.<\/p>\n\n\n\n<p>Capitec continues to invest in data and technology that allows it to use trillions of data points \u2013 creating solutions that yield tangible value and meet the needs of its clients.<\/p>\n\n\n\n<p>\u201cWe have laid solid foundations for long-term growth, powered by our scalable technology and diversified business model,\u201d said Fourie.<\/p>\n\n\n\n<p>\u201cWe 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.\u201d<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.capitecbank.co.za\/financial-results\/2025\/?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_campaign=April+2025\" target=\"_blank\" rel=\"noreferrer noopener\">Click here to view Capitec\u2019s 2025 financial results.<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Capitec has diversified its offerings by introducing business banking, value-added services, Capitec Connect, and insurance under a dedicated insurance licence.<\/p>\n","protected":false},"author":57,"featured_media":821982,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10459],"tags":[1798,22378],"class_list":["post-821981","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","tag-capitec","tag-capitec-financial-results"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/821981","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=821981"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/821981\/revisions"}],"predecessor-version":[{"id":821984,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/821981\/revisions\/821984"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/821982"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=821981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=821981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=821981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}