Capitec Limited announced its interim financial results, reporting headline earnings growth of 19% to R9.5bn for the six months ended August 31, 2026. This growth was underpinned by momentum across all of its South African businesses, including Personal Banking, Business Banking, Fintech, and Insurance. The group's diversified model delivered broad-based quality growth, maintaining a return on ordinary shareholders' equity of 31%.
Capitec's CEO, Graham Lee, highlighted the strength of the group's fundamentals, stating that every one of its South African businesses grew earnings during this period. Despite global macroeconomic uncertainty, the group kept fees unchanged for a second year, invested in technology, and improved client service. The board declared an interim dividend of 3,110 cents per share, up 19% from 2,620 cents in August 2025.
The group's cost-to-income ratio improved to 36% from 40%, reflecting investments made over the past several years that are translating into scalable growth and stronger operating leverage. Key financial highlights include a 7% growth in net interest income to R12.7bn and a 21% rise in net non-interest income to R16.1bn. Fintech income grew 32% to R3.8bn, while the net insurance result increased 28% to R3bn.
Capitec's client base continues to grow, with active clients increasing to 26.6-million and fully banked clients rising 11% to 10.4-million. The shift towards fully banked relationships has led to an increase in transactions per client, with digital transaction volumes growing 26% to 662-million. The adoption of digital payments accelerated, with users of Apple Pay, Garmin Pay, Google Pay, and Samsung Pay increasing 68% to 2.4-million.
The Personal Banking segment extended affordable credit to more South Africans, growing its gross loan book beyond R100bn for the first time. Solutions such as credit cards and term loans for education, vehicles, or home improvement realized 9% growth in lending income to R11.4bn. Capitec's Fintech businesses, including Value-Added Services and Capitec Connect, grew net income 30% to contribute R2.7bn to group headline earnings.
The Insurance business grew headline earnings by 22% to R2.5bn, driven by strong performances from Credit Life and Funeral Cover. Business Banking also scaled rapidly, with headline earnings surging 52% to R609m, supported by increased lending income, higher transaction volumes, and improved operating leverage. Total Business Banking clients increased by 123% to 686,000.
Capitec continued to invest in initiatives that extend its impact beyond traditional banking, including the launch of its Smart ID service in March 2026. The group processed a significant number of Smart ID applications, demonstrating its capabilities in this area. With a strong financial performance and expanding services, Capitec solidifies its position as a leading South African bank.
Key points
- Capitec's headline earnings grew 19% to R9.5bn for the six months ended August 31, 2026.
- The group's diversified model delivered broad-based quality growth across its South African businesses.
- Capitec's client base continues to grow, with active clients increasing to 26.6-million and fully banked clients rising 11% to 10.4-million.
