Capitec’s strong share price growth helped it become South Africa\u2019s largest bank by market cap, exceeding FirstRand, Standard Bank, Absa, and Nedbank.<\/p>\n\n\n\n
The big share price jump followed the release of Capitec\u2019s annual financial results for the year ended 28 February 2025.<\/p>\n\n\n\n
The results were exceptional. It reported a 30% increase in headline earnings to R13.7 billion and a 34% dividend hike.<\/p>\n\n\n\n
Over the past five years, Capitec introduced business banking, value-added services (VAS), Capitec Connect, and insurance under its own licence.<\/p>\n\n\n\n
Capitec grew its active client base to 24.1 million. Remarkably, it is now serving more than half of the country\u2019s adult population<\/p>\n\n\n\n
This was accomplished despite a challenging economic climate, highlighting the strength of Capitec\u2019s diversified business model.<\/p>\n\n\n\n
The bank\u2019s continued investment in data and technology allows it to use trillions of data points to create solutions that yield value and satisfy client needs.<\/p>\n\n\n\n
Capitec CEO Gerrie Fourie, set to retire later this year, said the results represent more than mere numbers.<\/p>\n\n\n\n
\u201cWe have always believed that banking should be simple, affordable, accessible, and personal. These results demonstrate that we are achieving that,\u201d he said.<\/p>\n\n\n\n
\u201cThrough our high-volume, low-margin business model, we enable everyone to access solutions that allow them to take control of their finances.\u201d<\/p>\n\n\n\n
Investors love the Capitec story despite being expensive at a price-to-earnings (P\/E) multiple of well above 30.<\/p>\n\n\n\n
Grant Nader from Benguela Global Fund Managers explained that high quality and growth do not come cheap.<\/p>\n\n\n\n
\u201cIt is a phenomenal company with an incredibly innovative culture that continues to deliver excellent results,\u201d he said.<\/p>\n\n\n\n
\u201cThe way Capitec\u2019s 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,\u201d he said.<\/p>\n\n\n\n
For years, Capitec has been the biggest bank by subscriber numbers. However, it has lagged FirstRand and Standard Bank in market cap.<\/p>\n\n\n\n
This has now changed. Capitec experienced share price growth of 60% over the past year, including a 30% increase in April.<\/p>\n\n\n\n
It increased Capitec\u2019s market cap to R407 billion, making it the most valuable bank in South Africa.<\/p>\n\n\n\n
It is higher than FirstRand\u2019s R401 billion and Standard Bank\u2019s R384 billion. Capitec is also more valuable than Absa and Nedbank combined.<\/p>\n\n\n\n
The table below shows the market cap of South Africa\u2019s largest banks on Friday, 25 April 2025.<\/p>\n\n\n\n Capitec’s strong share price growth helped it become South Africa\u2019s largest bank by market cap, exceeding FirstRand, Standard Bank, Absa, and Nedbank.<\/p>\n","protected":false},"author":10,"featured_media":812315,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[961],"tags":[29,1798,4088,20195,1799,499],"class_list":["post-822283","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-absa","tag-capitec","tag-firstrand","tag-gerrie-fourie","tag-nedbank","tag-standard-bank"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/822283","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\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=822283"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/822283\/revisions"}],"predecessor-version":[{"id":822284,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/822283\/revisions\/822284"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/812315"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=822283"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=822283"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=822283"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Company<\/strong><\/td> Market Cap<\/strong><\/td><\/tr> Capitec<\/td> R407 billion<\/td><\/tr> FirstRand <\/td> R401 billion<\/td><\/tr> Standard Bank <\/td> R384 billion<\/td><\/tr> Absa<\/td> R151 billion<\/td><\/tr> Nedbank<\/td> R122 billion<\/td><\/tr> Investec<\/td> R108 billion<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"