Capitec reported a 23% rise in headline earnings to R16.8 billion for the financial year ended February 2026, with the majority of its income now generated from non-lending activities, underscoring a continued shift in its business model.
Non-interest income accounted for 67% of income from operations after credit impairments, reflecting strong growth in fees, insurance and value-added services, as the bank deepens its role in customers’ daily financial lives.
The lender, which serves 26 million active clients, posted a return on equity of 31%, maintaining its position as South Africa’s largest retail bank by customer numbers.
Net interest income after credit impairments rose 18% to R24.1 billion, supported by product innovation and disciplined credit extension, but was outpaced by growth in non-lending segments.
Revenue from value-added services, including Capitec Connect, increased 38% to R6.1 billion, while net insurance income also rose 38% to R5.2 billion. Funeral cover policies grew 13% to 16.6 million, while life cover more than doubled to 221,000 policies.
Capitec Connect, the bank’s mobile virtual network operator, reached 1.5 million active users in the past three months, as the group expanded its offering beyond traditional banking services.
Digital activity continued to rise, with 15 million active app users and about half of all payments now conducted digitally. E-commerce transactions increased 32% to 643 million, while digital wallet transactions more than doubled to 335 million.
Business banking also gained traction, with the number of business clients rising 71% to 456,000. Merchant turnover through card machines reached R98.6 billion, while the scored lending book grew 118% to R3.1 billion.
During the year, Capitec returned R1 billion to customers through lower fees, reduced pricing and rewards, as it leveraged scale to enhance value. The bank said it also strengthened fraud prevention, with systems blocking more than 131,000 suspicious beneficiaries and preventing scam payments worth over R673 million.
Looking ahead, Capitec said it would focus on expanding its payments ecosystem and growing its presence in insurance, business banking and digital services.
“Our fundamentals have not changed in 25 years,” Chief Executive Graham Lee said. “We will continue to make banking simpler and more affordable while delivering value to our clients.”