Capitec, South Africa’s largest digital bank, announced another six months of strong growth. Headline earnings rose 26% to R8 billion in the period from March 2025 to August 2025.
This performance comes from a focus on clients and delivering innovative solutions. These solutions remain relevant in their daily lives. Our goal has been to build trust and make a meaningful impact for our clients. The scale of our 25 million client base puts us in a strong position. It allows us to lower the cost per transaction, increase revenue, and continue investing in initiatives and products that meet our clients’ daily needs.
– Graham Lee, Group CEO of Capitec
Interim results highlights
- Headline earnings increased by 26% to R8 billion (August 2024: R6.4 billion).
- Net interest income after credit impairments increased by 27% to R7.1 billion. This was driven by new credit initiatives and prudent management.
- Non-interest income, including Value-Added Services (VAS), Capitec Connect and Insurance, grew by 19% to R13.4 billion (August 2024: R11.3 billion).
- The Fintech business, which includes VAS and Capitec Connect, grew by 40% to R2.9 billion (August 2024: R2.0 billion).
- Return on shareholders’ equity improved to 31% (August 2024: 29%).
Winning clients across segments
Capitec Group’s total client base grew by 8%. The Personal Bank now serves over half of South Africa’s adult population. Fully banked clients increased by 11% to 9.4 million.
The youth market showed strong engagement. Clients aged between 16 and 35 grew to 12 million, giving Capitec a 58% market share among young people. High-income earners also increased. Clients with salaries above R50,000 per month grew by 24%. This reflects Capitec’s growing relevance among higher-income South Africans.
Importantly, business owners choose Capitec for its affordable, transparent and accessible products.
Diversified ecosystem powering growth
The Group continues to deliver impressive returns by expanding beyond Personal Banking.
Capitec’s Insurance business contributed 26% to Group earnings. It includes Credit Life Insurance, Life Cover and Funeral Plans, which now cover 15.8 million lives, up 16% year-on-year.
The Fintech segment, comprising VAS and Capitec Connect, also contributed 26% to Group earnings. It experienced rapid growth across all product lines. There are now 1.1 million active Capitec Connect SIMs and 12 million clients purchasing VAS through the Capitec app.
AvaFin, the Group’s international lending arm, operates in Poland, Latvia, Czechia, Spain, and Mexico. It contributed R124 million to Group headline earnings for the period 1 May 2024 to 31 August 2024. Active clients increased by 27%.
Capitec Business contributed 5% to Group earnings, up from 2% last year. It now services 182,000 businesses, expanding its client base by 57%. Trading merchants using Capitec card machines grew by 165%, reaching 85,000. This demonstrates growing confidence from South African SMEs. More business owners choose Capitec as their trusted financial partner.
New solutions solving real client needs
In the last six months, Capitec introduced simpler, more accessible and more affordable solutions. These innovations unlocked value for its 25 million clients. Cross-border money transfers, in partnership with Mama Money, now enable payments to eight African countries via the Capitec app. Transferred money reflects in minutes.
Capitec also launched a youth-focused credit card. It allows young clients with no credit history to build a credit profile responsibly. Limits start at R600, repayable in three monthly instalments.
The repay-as-you-earn loan helps multiple income earners and SMEs qualify for credit based on non-salary income. It allows repayment in smaller, flexible instalments. Capitec will also launch an improved secured home loan product with SA Home Loans. This product offers zero limits, competitive interest rates and up to 50% off bond attorney fees.
Capitec Connect added new devices. Clients can order 22 different smartphones via the app, delivered within three days. They also receive 30GB of free data over six months. This shows how business owners choose Capitec for convenience and daily relevance.
Disrupting revenue to deliver client value
Capitec continues to lead in affordability. It returned R203 million to clients through fee simplification. From 1 March 2025, it reduced and simplified transaction fees for Personal and Business Banking with its R1, R2, R3, R6 and R10 structures.
Personal Banking clients saved R106 million through lower fees. Business Banking clients saved R97 million. Clients were encouraged to move from SMS notifications, which carry a fee, to free in-app notifications. This saved them R52 million.
Reduced merchant commission rates and discounted card machines saved clients R95 million. Over the same period, the Group rewarded 449 terabytes of Capitec Connect data to clients. This is equivalent to streaming 153,000 HD movies.
Driving digital innovation
Capitec continues to accelerate investments in its digital ecosystem. App users grew by 13% to 14 million, which drove a 35% surge in e-commerce transactions. Digital payments adoption also rose, with a 131% year-over-year increase in Digital Wallet transactions.
Recent innovations include:
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Enhanced security
AI-enabled fraud prevention tools stopped over 23,000 scam payments, saving clients over R200 million.
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In-app calling
Free in-app calling improved client experience and saved R5 million in airtime costs.
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Easier connections
Personal Banking Credit Card clients now enjoy 1% cashback, 1GB free Capitec Connect data monthly and zero forex commission. These benefits saved clients R25 million in six months.
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Time saving
3.9 million transactions, such as statement requests or account confirmation letters, were processed through self-service terminals. This freed consultants from 3.2 million minutes of in-branch workload.
Looking ahead
As Capitec approaches its 25th anniversary, it remains focused on purposeful innovation. It will stay true to its fundamentals while anticipating client needs.
Looking ahead, we will focus on delivering better client experiences through inclusive credit, smarter digital tools, and partnerships that remove barriers. Banking should be simple, accessible and human. We remain committed to expanding our digital ecosystem, deepening client relationships and creating opportunities for every South African.
