Capitec is expecting a notable rise in both its earnings per share and headline earnings per share (HEPS) in its next interim results.<\/p>\n\n\n\n
In a trading statement, the banking giant said it expects group earnings per share to be between 8,215 cents and 8,354 cents, representing an 18% to 20% year-on-year increase.<\/p>\n\n\n\n
HEPS is also expected to rise to 8,174-8,312 cents, representing another 18%-20% increase from 6,927 cents in the interim period ended 31 August 2025.<\/p>\n\n\n\n
Capitec said the improved earnings have been buoyed by continued growth across the company, despite elevated inflation and higher interest rates in South Africa.<\/p>\n\n\n\n
“The expected improvement in earnings was supported by continued growth across the group\u2019s diversified business activities during a period of elevated inflation and an increase in the repo rate,” it said.<\/p>\n\n\n\n
It said its growth in commission and transaction income came from a continued expansion and optimisation of its client base.<\/p>\n\n\n\n
The company now has over 26 million personal banking clients, with the interim period also seeing higher-than-average transaction volumes.<\/p>\n\n\n\n
It said the high average transaction volumes were particularly supported by a solid growth in card transactions.<\/p>\n\n\n\n
“Increased transaction frequency per client, together with higher average transaction values, contributed to continued growth in income from Value-Added Services,” Capitec said.<\/p>\n\n\n\n
Despite challenging economic conditions in South Africa, the bank noted an increase in personal banking lending income.<\/p>\n\n\n\n
“The forward-looking macroeconomic credit impairment charge grew due to the latest economic scenarios while book quality was maintained,” it said.<\/p>\n\n\n\n
“Business lending activity resulted in a higher upfront credit impairment charge, and the forward-looking macroeconomic credit impairment charge also increased, similar to the Personal Bank.”<\/p>\n\n\n\n
It also noted that its insurance offerings, including life insurance and “credit life”, had performed strongly in the latest interim period.<\/p>\n\n\n\n
“Group operating expenses remained well controlled, led by technology-driven efficiencies, supporting profitability and returns,” it said.<\/p>\n\n\n\n
After entering South Africa’s banking sector in 2001, Capitec has seen explosive growth in recent years, focusing on affordable banking services.<\/p>\n\n\n\n
In the last five years, the company’s share price has risen by roughly 139%, with its market cap currently approximately R522 billion.<\/p>\n","protected":false},"excerpt":{"rendered":"
Capitec is expecting to report huge growth in earnings in its next interim results, as it hits 26 million customers in South Africa.<\/p>\n","protected":false},"author":131,"featured_media":858146,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"posted","_sma_x_autopost_error":"","_sma_x_post_id":"2098061947597889851","_sma_facebook_post_id":"191437357620492_2201519880668411","_sma_instagram_post_id":"17919442236428895","_sma_x_attempts":1,"footnotes":""},"categories":[961],"tags":[1798,1364,853],"class_list":["post-874865","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-capitec","tag-sens-2","tag-south-africa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/874865","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\/131"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=874865"}],"version-history":[{"count":12,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/874865\/revisions"}],"predecessor-version":[{"id":874898,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/874865\/revisions\/874898"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/858146"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=874865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=874865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=874865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}