Capitec earnings surge, driven by 'client-centered' strategy

The Money Show's Stephen Grootes is joined by Graham Lee, new CEO of Capitec Bank Holdings.

Capitec has posted another strong set of results, for its half-year to end-August 2025.

Headline earnings were up 26% to R8 billion for the six months.

This translated into headline earnings per share (HEPS) of 6,962 cents, also an increase of 26%.

The group declared an interim ordinary dividend of 2,620 cents per share, another hike of 26%.

During the six months, Capitec grew its personal banking clients to 24.4-million, from 22.8-million in 2024.

The number of fully banked clients rose by 11% to 9.4-million, comprising 38% of active clients.

Capitec noted that a reduction in transaction fees from 1 March 2025 resulted in client cost savings of R106 million.

CEO Graham Lee, who took over from Gerrie Fourie in July, says the bank's continued momentum over the last few years really is client-centered.

"That really started with a very strong focus on our clients... making sure that we understand them and their needs as best as we possibly can, and then designing our solutions for THEM."

Graham Lee, CEO - Capitec Bank Holdings

"So we are gratified that they continue to vote with their feet by coming to Capitec."

Graham Lee, CEO - Capitec Bank Holdings

Capitec's non-business banking operations (e.g. insurance and cell phone services) also did well during the half year.

For now, they will continue to focus on the established areas, and not adding new services, says Lee.

"There is still a lot of work to do in insurance for instance, and ensuring that the three products we have are the  best they can possibly be and that we're serving our clients end-to-end with the best client experience of any insurance company in the market."

Graham Lee, CEO - Capitec Bank Holdings

"In terms of Capitec Connect, there are still massive growth opportunities for us, and that's before you even start on the opportunities that still exist for us in personal banking and the VAS (value-added services) products that we offer."

Graham Lee, CEO - Capitec Bank Holdings

Lee also highlights future growth in business banking, citing this as the area he's most excited about.

"It's such a massive growth opportunity for us at Capitec, but also a massive growth opportunity for the country because of the additional employment we should expect in South Africa over the course of the next ten years coming from small business."

Graham Lee, CEO - Capitec Bank Holdings