South African discount retail giant Pepkor Holdings has received regulatory clearance to establish a banking presence, marking a significant step in its diversification beyond retail and financial services. The company announced on Tuesday that the Prudential Authority granted approval in November, paving the way for Pepkor to enter South Africa’s highly competitive banking industry.
The move is underpinned by Pepkor’s recent acquisition of Cloudbadger, a fintech software provider. According to Group CEO Pieter Erasmus, the acquisition is central to the company’s banking ambitions:
The platform that we acquired—and the team that comes with it—is a key ingredient to developing this opportunity. We believe this positions us very well.
Pepkor plans to unveil details of its banking offering and target customer segments in March 2026.
This strategic expansion aligns with a broader trend among South African retailers seeking new revenue streams. Competitors such as Shoprite, which has rolled out banking services, and Pick n Pay, offering in-store banking through TymeBank, have already made similar moves. Pepkor will now compete against established players including Standard Bank, FirstRand’s FNB, Absa, Nedbank, and Capitec Bank.
The announcement follows a strong financial performance for Pepkor. For the year ended September 30, headline earnings per share (HEPS) from continuing operations rose 14.8% to 161 cents, up from 140.2 cents a year earlier. Normalised HEPS grew 23.4% to 161 cents.
Pepkor’s fintech segment surged 31.1% to 16.6 billion rand ($960 million), driven by 61.4% growth in financial services and a 13.7% increase in Flash, its informal market platform. Group revenue climbed 12% to 95.3 billion rand, with the clothing and general merchandise division up 8.9% to 66.9 billion rand, and the furniture, appliances, and electronics segment growing 7.2%.
