Capitec Bank has reported another strong performance in its interim results for the six months ending 31 August 2025, underscoring its continued growth across personal, business, and digital banking segments. The bank’s headline earnings rose by 26% year-on-year to R8 billion, while its client base surpassed 25 million, reinforcing its position as South Africa’s largest retail bank by customer numbers.
Strong Financial Performance
The group delivered a return on equity (ROE) of 31%, up from 29% in the previous period, reflecting improved profitability and operational efficiency. In line with earnings growth, Capitec declared an interim dividend of 2,620 cents per share, a 26% increase from the 2,085 cents paid in August 2024.
Net interest income climbed 23%, driven by a 40% surge in loan disbursements and a 16% increase in interest income on lending. Business banking continued its upward trajectory, with loan disbursements rising 42%, building on momentum from the previous financial year.
Capitec attributed part of its success to enhanced credit scoring capabilities:
Leveraging the data available to us to score clients more accurately allowed us to make more targeted offers to lower-risk clients. This led to a growth of 32% in Personal banking loan disbursements.
AvaFin Boosts International Lending
Capitec’s international lending arm, AvaFin, which was only partially included in 2024 results, contributed significantly in 2025. Interest income from AvaFin reached R1.7 billion, up from R854 million in the prior period. AvaFin’s loan book expanded by 48%, but this also led to a rise in credit impairments, with its contribution to the group’s gross credit impairment charge increasing to R761 million, compared to R305 million previously.
Overall, Capitec’s gross loan book grew by 12%, while the credit loss ratio, including AvaFin, edged up to 7.9% from 7.6% in 2024.
Deposit Growth and Cost Management
Despite an 11% increase in deposits and wholesale funding, interest expenses declined to R4.7 billion from R5.1 billion. This was largely due to a slower-than-expected migration to higher interest rate savings accounts and the impact of repo rate reductions.
Expanding Client Base
Capitec’s Personal banking clients grew to 24.4 million, up from 22.8 million in August 2024 and 23.6 million in February 2025. The number of fully banked clients—those using Capitec as their primary bank—increased by 11% to 9.4 million, now representing 38% of active clients, up from 37% a year earlier.
Diversified Income Streams
Capitec’s net non-interest income accounted for 65% of income from operations after credit impairments, slightly down from 67% in 2024. Transaction fee and commission income (excluding value-added services and Capitec Connect) rose by 7%, though growth was tempered by lower transaction fees.
Digital adoption continued to accelerate, with digital and card payments making up 91% of transaction volumes, excluding system-generated transactions, up from 89% in 2024.
Value-added services (VAS) remained a bright spot, generating R2.7 billion in income, a 36% increase. Insurance also performed strongly, with the net insurance result rising 45% to R2.4 billion. Credit life insurance income grew by 12%, while funeral and life cover income more than doubled to R1.4 billion, up from R735 million. This growth was partly due to Capitec now retaining 100% of profits on funeral policies issued from 1 November 2024, following the end of a previous profit-sharing agreement.
Capitec Connect Gains Momentum
Capitec’s mobile offering, Capitec Connect, saw net income more than double to R165 million, with active clients reaching 1.1 million, up from 600,000. Data usage surged by over 100% to 14.9 petabytes, while voice usage tripled from 95 million minutes to 311 million minutes, reflecting strong uptake of its telecom services.
| Metric | Change | Current (Aug 2025) | Previous (Aug 2024) |
| Headline earnings | +26% | R8.0 billion | R6.4 billion |
| Interim dividend per ordinary share | +26% | 2 620 cents | 2 085 cents |
| Return on ordinary shareholders’ equity (ROE) | – | 31% | 29% |
| Banking app clients | +13% | 14.0 million | 12.4 million |
| Annualised credit loss ratio (CLR) – Total | – | 7.9% | 7.6% |
| └ Personal banking | – | 8.1% | 8.3% |
| └ Business banking | – | 2.1% | 1.8% |
| Net interest income after credit impairments | +27% | R7.1 billion | R5.6 billion |
| Net non-interest income | +19% | R13.4 billion | R11.3 billion |
| Value-added services (VAS) and Capitec Connect | +40% | R2.9 billion | R2.0 billion |
| Non-interest income to income from operations after credit impairments | – | 65% | 67% |
| Net insurance income | +45% | R2.4 billion | R1.6 billion |
