By Siyanda Mthethwa
JOHANNESBURG (Reuters) -South African lender Capitec Bank reported a 26% increase in half-year profit on Wednesday driven by a strong performance across its banking, insurance, and fintech segments.
Alongside a sharp rise in active customers, the profit increase reinforces its position as the country’s largest retail bank by customer base.
Headline earnings per share, a key profitability metric in South Africa, rose to 8 billion rand ($464.37 million) for the six months ended August 31, from 6.4 billion rand in the same period last year.
The bank grew its client base to 25 million, up from 23 million a year ago. Net interest income after credit impairments rose by 27% to 7.1 billion rand, reflecting increased earnings from loans relative to interest paid on deposits.
Net non-interest income rose 19% to 13.4 billion rand.
“Our ability to leverage economies of scale, simplify transaction costs, and innovate across our offerings has made a meaningful difference for our clients while delivering strong financial results,” said Group CEO Graham Lee, who officially succeeded Capitec founder Gerrie Fourie in June 2025.
Loan disbursements grew by 40% during the period, supported by a 32% rise in personal banking loans and a 42% increase in business banking loans.
Capitec posted a 36% surge in income from value-added services and a 45% increase in net insurance income, driven by higher sales of funeral and life cover policies.
It declared an interim dividend of 26.20 rand per share, a 26% increase from 20.85 rand a year earlier.
($1 = 17.2277 rand)
(Reporting by Siyanda Mthethwa;Editing by Sfundo Parakozov, Muralikumar Anantharaman and Christian Schmollinger)
