Capitec’s fintech operations, comprising value-added services (VAS) and its mobile virtual network operator (MVNO) Capitec Connect, continued to gain momentum in the six months to 31 August, with net income from the businesses rising 30% to R2.7 billion.
The growth came as Capitec reported a 19% increase in headline earnings to R9.5 billion for the period, from R8 billion a year earlier.
VAS net income increased 30% to R3.5 billion, driven by everyday services, including prepaid airtime, data and electricity.
The interim results show Capitec Connect also continued to expand, with active clients over the past three months increasing to 1.8 million, from 1.1 million in the comparable period.
Connect data usage more than doubled from 14.9 million gigabytes to 34.3 million gigabytes, while voice usage increased 84%.
The bank’s MVNO introduced free Capitec-to-Capitec calls during the period, with customers using 70 million free minutes. The bank also started selling mobile phones through its app, with 27 000 devices sold in the six months.
Fintech contributed 29% of Capitec’s group earnings, highlighting the growing contribution of businesses outside its traditional banking operations.
The group says its net non-interest income increased 21% to R16.1 billion and now accounts for 70% of income from operations after credit impairments, compared with 65% in the prior period.
Spreading out
Overall, Capitec’s headline earnings rose to R9.5 billion despite what it describes as heightened global macro-economic uncertainty and muted economic growth. Return on ordinary shareholders’ equity remained at 31%.
“Our results show the power of the diversified business we have built over decades on strong fundamentals of simplicity, affordability, accessibility and a personalised experience,” says Capitec CEO Graham Lee.
“Every one of our South African businesses grew earnings this period, even as the global environment stayed uncertain and economic growth remained muted. We kept fees unchanged for a second year running, invested in technology and in serving our clients better, supporting our strategy to build a banking platform that delivers shared value at scale.”
Personal banking accounted for 37% of group earnings, followed by insurance at 27%, fintech at 29% and business banking at 6%.
Net interest income increased 7% to R12.7 billion, supported by a 21% increase in loan disbursements. Capitec’s gross loan book in personal banking passed R100 billion for the first time.
The bank says lending income increased 9% to R11.4 billion, with growth supported by products including credit cards and term loans.
Capitec also continued to grow its customer base, as active clients increased 7% to 26.6 million, while fully banked clients rose 11% to 10.4 million.
The number of clients using the Capitec app in the previous month increased 18% to 16.5 million. Digital transaction volumes, excluding VAS, rose 26% to 662 million.
Digital payments also recorded strong growth, with users of Apple Pay, Garmin Pay, Google Pay and Samsung Pay increasing 68% to 2.4 million. Spend through these services increased 87% to R52.1 billion.
Outside fintech and banking, Capitec’s insurance business reported a 22% increase in headline earnings to R2.5 billion. Its net insurance result increased 28% to R3 billion.
Business banking delivered one of the strongest percentage increases in the group, with headline earnings surging 52% to R609 million.
Business banking clients increased 123% to 686 000, while merchant accounts rose 66% to 141 000. Credit extended to businesses increased 37% to R35.5 billion.
Smart ID push
Capitec says it has processed more than 594 000 smart ID applications since launching the service with the Department of Home Affairs in March 2026. According to the bank, the service has since been expanded to 248 branches.
The group has also launched a Capitec Stokvel Account aimed at enabling groups to save digitally.
Looking ahead, Capitec says it is focused on becoming a leading payments provider and expanding its embedded finance capabilities.
“Our purpose to make a meaningful difference and help South Africans grow remains the driving force behind every decision and every innovation,” Lee adds.
Share
