Diversifying pays off for Capitec as profits surge

Capitec Bank has reported a 23% rise in ‌full-year profit, as active clients rose to 25.8 million.

For the financial year ended February 2026, Capitec increased headline earnings by 23% to R16.8 billion.

Headline earnings per share (HEPS) rose by 23% to 14 606 cents per share, from 11 912 cents per share in the prior year.

Total dividend per ordinary share increased by 23% to 7 980 cents per share, from 6 510 cents per share.

The Group says it is now fully diversified, with Personal Banking contributing 41% of Group headline earnings.

This is supported by 27% from Insurance, 26% from Fintech (VAS and Capitec Connect) and 5% from Business Banking.

In conversation with Stephen Grootes, CEO Graham Lee talks about the Group's deliberate strategy to diversify its offering.

"I think the way we approach it is to look at all of those things that our customer needs that are related to the services we already provide them, and question ourselves as to how we can serve them even better."

A case in point is Capitec Connect, the Internet service provider the Group launched in 2022.

"It might not seem obvious that a mobile virtual network operator (MVNO) has anything to do with banking at all, but this has become such a fundamental part of our clients' lives - including the way that they engage with us and use our app, that bringing our promise of simplicity and accessibility to a service that underpins how they access financial services, becomes an obvious choice."

Of course this service also provides huge access to client data, which serves both the company and the customer.

In knowing their client better, they can provide them with better services, Lee says.

"You see that playing out, for example, in the credit space where we dispersed far more loans without increasing our risk appetite. And the reason we're able to say 'yes' to many more people is because we know them better... and data from all sources, including the cellphone data, is relevant there."