By Capitec Limited has delivered a robust set of results for the six months ended 31 August 2026, reporting a 19% increase in headline earnings to R9.5 billion, up from R8.0 billion during the corresponding period in 2025.
The stellar performance was underpinned by widespread momentum across the Group’s diverse South African business segments—spanning Personal Banking, Business Banking, Fintech, and Insurance—while maintaining a solid return on ordinary shareholders’ equity (ROE) of 31%.
Reflecting strong confidence in the group’s ongoing financial stability and cash generation, the Board declared an interim dividend of 3,110 cents per share, marking a 19% increase compared to the 2,620 cents declared in August 2025. Operating leverage also improved significantly, with the cost-to-income ratio strengthening to 36% from 40%.
A Diversified Engine Driving Quality Growth
Despite persistent global macroeconomic uncertainty and a muted domestic economic environment, Capitec’s diversified business model continued to scale effectively. Total active clients expanded by 7% to reach 26.6 million.
The group’s revenue mix highlights a strategic shift toward non-interest income streams. Net interest income grew by 7% to R12.7 billion, supported by a 21% increase in loan disbursements. Meanwhile, net non-interest income climbed 21% to R16.1 billion, now comprising 70% of income from operations after credit impairments, up from 65% in 2025.
Earnings contribution across the group’s key pillars illustrates its expanding ecosystem:
- Personal Banking: Contributed 37% to total group earnings, serving as the core foundational platform.
- Fintech: Contributed 29% to earnings, growing net income via Value-Added Services (VAS) and Capitec Connect.
- Insurance: Contributed 27% to earnings, fuelled by robust performances in Credit Life and Funeral Cover.
- Business Banking: Contributed 6% to earnings, experiencing a sharp acceleration in scale.
Digital Dominance and Expanding Client Relationships
Capitec reinforced its status as South Africa’s leading digital bank as deeper client engagement propelled transaction volumes. Fully banked clients increased by 11% to 10.4 million, representing 41% of the active client base compared to 38% previously.
Digital adoption metrics highlight rapid acceleration:
- App Usage: Clients utilizing the Capitec app over a 30-day period rose 18% to 16.5 million.
- Transaction Volumes: Digital transaction volumes (excluding VAS) surged 26% to 662 million transactions.
- Mobile Payments: Users leveraging Apple Pay, Google Pay, Samsung Pay, and Garmin Pay jumped 68% to 2.4 million, driving an 87% increase in spend to R52.1 billion.
Segment Highlights: Credit, Fintech, Insurance, and Business Banking
- Personal Banking & Credit: Gross loan books surpassed R100 billion for the first time. Lending income across credit cards and term loans grew 9% to R11.4 billion. Capitec also highlighted zero international card fees and zero forex commission on its travel-friendly credit card offerings.
- Fintech Scaling: VAS and Capitec Connect net income grew 30% to R2.7 billion. Capitec Connect active clients reached 1.8 million, with data usage more than doubling to 34.3 million gigabytes. The business also integrated mobile device sales into the app, moving 27,000 phones in six months.
- Insurance Expansion: The net insurance result jumped 28% to R3.0 billion. Active funeral policies expanded to 3.8 million, covering over 17 million lives, while the 3-year-old Life Cover sum assured grew 75% to R126 billion.
- Business Banking Surge: Headline earnings for Business Banking surged 52% to R609 million, with total clients growing 123% to 686,000. Merchant accounts accelerated by 66% to 141,000, and credit extended to businesses climbed 37% to R35.5 billion.
Innovation Beyond Traditional Banking
Capitec continues to broaden its socio-economic impact through novel partnerships and digital features. Partnering with the Department of Home Affairs, the bank has processed over 594,000 Smart ID applications across 248 branches since March 2026. Furthermore, the group recently introduced the Capitec Stokvel Account, a secure digital savings vehicle tailored for South Africa’s estimated 800,000 stokvels.
Looking ahead, Chief Executive Officer Graham Lee emphasized that the group remains committed to expanding its embedded finance capabilities and solidifying its role as a premier payments provider. Reflecting this broader strategic evolution, the company recently changed its name from Capitec Bank Holdings Limited to Capitec Limited.
