Capitec, South Africa’s largest bank by customer base, is laying the groundwork for international expansion, signaling a strategic shift beyond its domestic stronghold. While these plans remain in their early stages, the bank’s recent performance and overseas investments suggest growing ambition.
With over 25 million customers, Capitec has cemented its position as the country’s most widely used bank. It is also in close competition with FirstRand for the title of South Africa’s most valuable financial institution, boasting a market capitalization of R400 billion.
In its latest financial results for the six months ending 31 August 2025, Capitec reported a 26% surge in headline earnings, reaching R8.0 billion. A notable contributor to this growth was AvaFin, a fast-growing international loan provider operating in Mexico, Poland, Spain, Czechia, and Latvia.
Capitec increased its stake in AvaFin from 40% to over 95% in 2024, and the subsidiary contributed R121 million to group headline earnings, representing 2% of total earnings. AvaFin now serves 250,000 clients and has disbursed loans worth €303 million, a 94% increase compared to the same period in 2024.
Despite AvaFin’s impressive growth, Capitec Group CEO Graham Lee emphasized that the international business remains relatively small. Lee outlined a long-term vision to build Capitec into a global brand, with plans to explore new international markets. However, he noted that no concrete decisions have been made yet, and the group is still evaluating potential regions for expansion.
Lee, who stepped into the Group CEO role in July after leading Capitec’s retail banking division, brings extensive international experience, having worked in Zimbabwe, Nigeria, the UK, and Australia. His global perspective is expected to shape Capitec’s future strategy, especially as South Africa’s low-growth environment pushes financial institutions to seek opportunities abroad.
While international expansion is on the horizon, Capitec’s immediate focus remains on its five core business units:
- Retail Banking
- Fintech (including VAS and Capitec Connect)
- Insurance
- Business Banking
- AvaFin
Lee acknowledged that, despite Capitec’s dominance in retail banking, other segments are still developing. For instance, the business banking division holds a modest market share, which the bank aims to grow. Meanwhile, Capitec Connect, its mobile offering in partnership with Cell C, has surpassed 1 million customer accounts, and the bank plans to continue scaling this service.
In the insurance space, Capitec recently took full underwriting responsibility for its life and funeral insurance products, further integrating these services into its ecosystem. Lee noted that most customers discover and adopt these offerings through the bank’s personal banking channels.
Unlike many competitors who are scaling back physical branches in favor of digital platforms, Capitec is doubling down on its branch network expansion. Lee stressed that a human touch remains essential, especially in educating customers about digital tools like the Capitec App, which now has 14 million users, making it the largest banking app in Africa.
Our branches are not just service points, they’re gateways to digital adoption. Many customers first engage with our app after visiting a branch.
CEO Graham Lee
As Capitec continues to evolve, its blend of digital innovation, customer-centric services, and strategic international investments positions it as a formidable player in South Africa’s banking landscape, and potentially, on the global stage.
