{"id":838736,"date":"2025-10-01T08:12:17","date_gmt":"2025-10-01T06:12:17","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=838736"},"modified":"2025-10-01T08:12:22","modified_gmt":"2025-10-01T06:12:22","slug":"capitec-shooting-the-lights-out","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/banking\/838736\/capitec-shooting-the-lights-out\/","title":{"rendered":"Capitec shooting the lights out"},"content":{"rendered":"\n

Capitec has seen yet another significant rise in headline earnings, with the bank’s total client base also breaking the 25 million mark.\u00a0<\/p>\n\n\n\n

In its interim results for the six months ended 31 August 2025, headline earnings grew by 26% to R8 billion. <\/p>\n\n\n\n

The group generated an ROE of 31% (2024:29%), with the group\u2019s interim dividend also increased by 26% to 2,620 cents (August 2024: 2,085 cents). <\/p>\n\n\n\n

The group\u2019s net interest income grew by 23%, driven by a 40% growth in loan disbursements and a 16% increase in interest income on lending. <\/p>\n\n\n\n

Business banking loan disbursements jumped by 42%, continuing the trend from the prior financial year. <\/p>\n\n\n\n

\u201cLeveraging the data available to us to score clients more accurately allowed us to make more targeted offers to lower-risk clients.\u00a0This led to a growth of 32% in Personal banking loan disbursements,\u201d it said.\u00a0<\/p>\n\n\n\n

Its international lending business, AvaFin\u2014which was only included for four months in 2024\u2014generated interest income on lending of R1.7 billion (2024: R854 million).\u00a0<\/p>\n\n\n\n

A restructuring of the group\u2019s savings account products and reductions in the repo rate led to a decline in interest expenses to R4.7 billion (2024: R5.1 billion)\u00a0despite an 11% increase in deposits and wholesale funding.\u00a0<\/p>\n\n\n\n

The group noted that the migration to the higher interest rate accounts has been slower than expected, adding to a decrease in interest expense.\u00a0<\/p>\n\n\n\n

With the group\u2019s gross loan book growing by 12%, the gross credit impairment charge on loans and advances increased by 18%. <\/p>\n\n\n\n

Another negative sign was the group’s credit loss ratio, including AvaFin, increasing to 7.9% (2024: 7.6%). <\/p>\n\n\n\n

AvaFin contributed R761 million to the charge compared to R305 million for the 4 months ended August 2024, as their loan books grew by 48%. <\/p>\n\n\n\n

Regarding customer numbers, Capitec\u2019s Personal banking clients grew to 24.4 million from 22.8 million in 2024 (February 2025: 23.6 million). <\/p>\n\n\n\n

Fully banked clients increased by 11% to 9.4 million and comprised 38% of its active clients, up slightly from 37% in 2024. <\/p>\n\n\n\n

Other businesses shine <\/h2>\n\n\n
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The group\u2019s net non-interest income was 65% of the income from operations after credit impairments (2024:67%). <\/p>\n\n\n\n

Total net transaction fee and commission income, excluding VAS and income from Capitec Connect, increased by 7%, with growth impacted by a reduction in transaction fees. <\/p>\n\n\n\n

Capitec noted that the move away from cash transacting continued, with digital and card payments comprising 91% of transaction volumes, excluding system-generated transactions (2024:89%).\u00a0<\/p>\n\n\n\n

Value-added-service income continued to grow rapidly and totalled R2.7 billion, an increase of 36%. <\/p>\n\n\n\n

The net insurance result jumped by 45% to R2.4 billion, while the increase in personal banking loan disbursements contributed to a 12% increase in credit life insurance income.<\/p>\n\n\n\n

Funeral and life cover income saw double-digit growth and increased to R1.4 billion (2024: R735 million). <\/p>\n\n\n\n

Growth in funeral income was partly driven by the inclusion of 100% of profits on funeral policies issued from 1 November 2024. A prior profit-sharing arrangement, where it paid 30% of profits to a partner, ended. <\/p>\n\n\n\n

Net income from Capitec Connect more than doubled to R165 million (2024: R69 million), while the number of active clients in the last 3 months reached 1.1 million (2024: 0.6 million). <\/p>\n\n\n\n

Data usage increased by over 100% to 14.9 petabytes (2024: 5.1 petabytes) while voice usage grew from 95 million minutes to 311 million minutes.<\/p>\n\n\n\n

Metric<\/strong><\/td>Change<\/strong><\/td>Current (Aug 2025)<\/strong><\/td>Previous (Aug 2024)<\/strong><\/td><\/tr>
Headline earnings<\/td>+26%<\/td>R8.0 billion<\/td>R6.4 billion<\/td><\/tr>
Interim dividend per ordinary share<\/td>+26%<\/td>2 620 cents<\/td>2 085 cents<\/td><\/tr>
Return on ordinary shareholders\u2019 equity (ROE)<\/td>\u2013<\/td>31%<\/td>29%<\/td><\/tr>
Banking app clients<\/td>+13%<\/td>14.0 million<\/td>12.4 million<\/td><\/tr>
Annualised credit loss ratio (CLR) \u2013 Total<\/td>\u2013<\/td>7.9%<\/td>7.6%<\/td><\/tr>
\u2514 Personal banking<\/td>\u2013<\/td>8.1%<\/td>8.3%<\/td><\/tr>
\u2514 Business banking<\/td>\u2013<\/td>2.1%<\/td>1.8%<\/td><\/tr>
Net interest income after credit impairments<\/td>+27%<\/td>R7.1 billion<\/td>R5.6 billion<\/td><\/tr>
Net non-interest income<\/td>+19%<\/td>R13.4 billion<\/td>R11.3 billion<\/td><\/tr>
Value-added services (VAS) and Capitec Connect<\/td>+40%<\/td>R2.9 billion<\/td>R2.0 billion<\/td><\/tr>
Non-interest income to income from operations after credit impairments<\/td>\u2013<\/td>65%<\/td>67%<\/td><\/tr>
Net insurance income<\/td>+45%<\/td>R2.4 billion<\/td>R1.6 billion<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n
\n","protected":false},"excerpt":{"rendered":"

Capitec has once again seen a massive rise in headline earnings, with its total customers hitting the 25-million mark. <\/p>\n","protected":false},"author":95,"featured_media":776396,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[961],"tags":[1798],"class_list":["post-838736","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-capitec"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/838736","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\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=838736"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/838736\/revisions"}],"predecessor-version":[{"id":838742,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/838736\/revisions\/838742"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/776396"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=838736"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=838736"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=838736"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}