Capitec at 25: how scale, trust and practical innovation are reshaping access to finance

Capitec reports headline earnings growth of 23% to R16.8 billion, celebrates R1 billion in client savings, and enters its next chapter as a diversified financial services group built on the trust of 26 million South Africans

Capitec opened its doors 25 years ago with a simple belief: banking should be simple, transparent and affordable. That belief continues to guide the business as it delivers another strong year of growth and deepens its role in the everyday lives of South Africans.

For the financial year ended February 2026, Capitec increased headline earnings by 23% to R16.8 billion, achieved a return on equity of 31%, and now serves 26 million active clients. The Group is now fully diversified with Personal Banking contributing 41% of Group headline earnings, supported by 27% from Insurance, 26% from Fintech(VAS and Capitec Connect) and 5% from Business Banking. Over the past year, the Group continued to earn and deepen the trust of clients by delivering simple, transparent and affordable financial solutions at scale. Digital transaction platforms, personal and business banking services, and insurance offers matured further, broadening the ecosystem and increasing the value delivered to clients. Innovative credit solutions expanded responsible access to credit while remaining within risk appetite, while significant investment in fraud prevention, data and artificial intelligence strengthened client protection and reinforced trust. These foundations give Capitec confidence in what it is building for clients, shareholders and South Africa.

Graham Lee, Group Chief Executive Officer, says the results reflect Capitec’s enduring commitment to serving clients in ways that matter. “Our growth over the past year reflects 25 years of staying focused on what matters most: making banking simpler, more accessible and more affordable for our clients. The trust that 26 million South Africans place in us is something we value deeply, and it remains the foundation on which we continue to build.”

“More than the numbers, these results show that clients are choosing Capitec to play a bigger role in their financial lives. That trust is earned over time, and we remain committed to honouring it.”

Growth with purpose

Capitec’s evolution into a diversified financial services group reflects a deliberate strategy to deepen relationships with clients across more parts of their financial lives. Non-interest income remained 67% of income from operations after credit impairments, reflecting how meaningfully the Group’s earnings mix has evolved.  Net interest income after credit impairments grew by 18% to R24.1 billion as a result of product innovation and prudent credit granting. 

Value-added services and Capitec Connect grew 38% to R6.1 billion, while net insurance income increased 38% to R5.2 billion as clients moved deeper into the broader Capitec ecosystem. Funeral Cover lives assured increased by 13% to 16.6 million, and Life Cover grew 129% to 221 000 lives insured, reflecting strong demand for simple, relevant insurance solutions that meet real client needs.

Using scale to enhance client value

Disciplined execution and technology-enabled platforms continue to translate scale into shared value. Over the last financial year, Capitec returned R1 billion to clients through lower fees, reduced pricing, cash back programmes, and rewards reinforcing the link between growth and long-term client value.

These savings include:

• R228 million in savings through the simplification and reduction of fees in March 2025
• R213 million delivered to South African businesses through reduced card machine and merchant commission rates, and discounted point-of-sale devices
• R61 million saved through lower international card fees and zero forex margins
• R330 million saved through lower Capitec Connect data prices
• R108 million in savings through free Connect data and Live Better rewards
• R107 million in 1% cash back for every rand spent on a Capitec Credit Card

Capitec Connect, the country’s largest MVNO, deepens this value further. With 1.5 million active clients in the last three months, it has become an increasingly embedded part of clients’ daily lives. Over the past year, the Group gave back 3 petabytes of free data, worth R78 million, helping clients stay connected to work, school and opportunity. In addition to giving clients access to affordable connectivity, Capitec Connect also launched affordable device sales to all clients through partnerships with Samsung and Apple, delivered nationwide. 

Deepening value across personal and business banking

Personal Banking remains the growth engine of the Group, with 25.2 million active clients – growing by 7%, and 9.9 million fully banked clients growing by 12%. Digital adoption continued to accelerate, with half of all payments now digital. E-commerce transactions, including Capitec Pay, increased 32% to 643 million, Pay wallet transactions rose 103% to 335 million, and international and cross-border payment volumes increased 29% to 85.6 million.

Personal and Business Banking launched innovative credit offerings during the year that were designed to align repayments with clients’ income patterns and business cycles. These solutions expanded access to formal credit for individuals and entrepreneurs who were previously underserved, supporting financial inclusion while enabling clients to improve their livelihoods and build sustainable businesses. Targeted offers fuelled by data analytics supported total loan disbursements growth of 34% to R98.3 billion highlighting deep client insights and understanding. 

Business Banking gained strong momentum as more entrepreneurs and small businesses responded to a clear value proposition built on low fees, strong service and faster credit approvals. Businesses and entrepreneurs grew 71% to 456 000. Merchant turnover through Capitec card machines reached R98.6 billion, while the scored lending book grew 118% to R3.1 billion and scored loan disbursements increased 134% to R3.2 billion. The Entrepreneur Account and Pay-As-You-Trade are extending this momentum by giving smaller and underserved businesses simpler banking and more practical access to working capital.

Innovation to strengthen protection and expand access

Capitec’s innovation strategy remains focused on solving real client problems in practical ways. Today, one in three South African adults (15 million) are active on the app – this increased by 19%. As digital adoption grows, so too does the importance of security, trust and resilience. During the year, Capitec’s fraud prevention systems blocked more than 131 000 bad beneficiaries, including 64 000 mule accounts, while AI warnings stopped over 394 000 scam payments and helped save clients more than R673 million.

Innovation is also expanding access beyond banking services. Through its work with the Department of Home Affairs, Capitec has enabled Smart ID applications across 86 branches nationwide. To date, 71 000 successful ID applications have been processed, including more than 5 400 senior citizens assisted, with clients able to apply in-branch within five minutes. This is practical innovation that restores dignity, saves time and extends access to essential services.

Investing in South Africa’s growth

Capitec’s social impact approach is rooted in the belief that long-term growth must create broader opportunity. During the year, the Group invested R75.9 million in education across the school pipeline, while the Capitec Foundation’s whole-school approach reached 33 public high schools and around 23 000 learners. 

Capitec employees also played an active role in bringing this impact to life, with 3 404 employees delivering 1 034 volunteer programmes and contributing R5.2 million in leave value. Internally, this same commitment to opportunity is reflected in a people strategy focused on inclusion, youth development and future-fit growth. In the past year, 87% of new hires were youth, 89% were equity hires and 57% were female, supported by 250 bursaries and graduate development opportunities and 1 067 learnerships.

The next 25 years

Looking ahead, the foundations Capitec has built over 25 years – simplicity, trust, data capability and a client base that spans every income bracket and life stage, position the Group strongly for its next chapter of growth and impact. In the near term, the focus remains on expanding the payments ecosystem, deepening embedded financial solutions, and building on the momentum across Business Banking, insurance, connectivity and digital services.

Lee adds: “Our fundamentals have not changed in 25 years, and they will not change in the next 25. We will continue to protect the trust our clients place in us, make banking simpler and more affordable, and ensure that our growth delivers more value to the people we serve.”