Capitec Bank (CPI) has done it again! It posted record profits for the fourth year in a row, solidifying its status as South Africa’s top retail bank. What started as a challenger bank has evolved into a financial heavyweight under outgoing CEO Gerrie Fourie, now serving more than 24 million clients. The secret? A sharp focus on low-income depositors, a bold push into business banking, and smart partnerships, like the one with SA Home Loans that helped nearly triple its home loan portfolio. With Graham Lee stepping in as the new CEO, Capitec’s strong client growth, diversified revenue, and tech-driven approach give it a solid edge in an increasingly competitive market. The question isn’t whether Capitec can keep its momentum, it’s how much further it can go.
Key Financial Metrics
● Headline Earnings: Increased by 30% to R13.7 billion.
● Net Interest Income After Impairments: Grew 54%, adding about R3 billion.
● Return on Equity (ROE): Approximately 29%, reflecting strong capital efficiency.
● Dividend: Final dividend is R44.25 per share.
● Transactional Income: Up 17% to R14 billion, driven by growing client activity.
● Funeral and Life Insurance Revenue: Increased to R1.9 billion.
● Client Base: Reached over 24 million personal and business clients.
● Business Banking Clients: Added 220 000 new clients.
● Group Deposits: Deposit balances grew by 13%.
● Capitec Pay Wallets: Expanded significantly to 1 million clients, up 1000%.
Analysis & Outlook Capitec’s share price hit an R3522.58 all-time high, up 11.67% in a week. Revenue diversification into insurance, mobile services, and business banking has helped sustain strong earnings momentum. Its low-cost, high-volume model, supported by ongoing technology investments and operational efficiency, highlights its potential scalability. While inflation and rising competition in the low-income and SME markets present challenges, Capitec’s strong client growth, improving credit quality, and expanding value-added services balance these risks.
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** This article was prepared by BROKSTOCK analyst Maboko Seabi