South African retail lender Capitec Bank posted a 23 percent rise in full-year headline earnings on Wednesday, powered by double-digit growth in interest income as its expanding customer base borrowed heavily, driving the bank’s strongest annual performance in its 25-year history.
Headline earnings for the financial year ended February 28, 2026 rose to 16.8 billion rand ($1.02 billion), up from 13.7 billion rand a year earlier. Capitec is listed on the Johannesburg Stock Exchange (JSE) under the ticker CPI and now serves more than 26 million active clients, making it South Africa’s largest bank by client numbers.
Net interest income climbed 19 percent to 24.1 billion rand, with interest income on lending growing 14 percent. Total loan disbursements surged 34 percent to 98.3 billion rand, reflecting strong demand across both personal and business banking segments. The bank also reported a 23 percent increase in its full-year dividend, with the final dividend declared at 53.60 rand per share, up from 44.25 rand the previous year. Return on equity improved to 31 percent from 29 percent, reinforcing the bank’s ability to generate high returns even as its loan book expands rapidly.
“Our growth over the past year reflects 25 years of staying focused on what matters most: making banking simpler, more accessible and more affordable for our clients,” said Graham Lee, Group Chief Executive Officer of Capitec. “More than the numbers, these results show that clients are choosing Capitec to play a bigger role in their financial lives.”
The strong lending growth came alongside rising credit risk. The bank’s net credit impairment charge increased 21 percent, and its credit loss ratio edged up to 8.1 percent from 7.5 percent, indicating more borrowers are coming under financial strain. Capitec acknowledged the pressure on households but said the ratio remained within its target range.
Beyond retail lending, the results highlighted progress across other business lines. Non-interest income grew 19 percent to 28.3 billion rand, driven by transaction services, insurance, and Capitec Connect, the bank’s mobile virtual network, which now has 1.5 million active clients. Net insurance income rose 38 percent. Business banking also gained momentum, with the number of business clients growing 71 percent to 456,000.
The bank’s digital push continued, with half of all payments now processed digitally and digital payment volumes up 25 percent year on year. Capitec also expanded into Smart ID processing through a partnership with South Africa’s Department of Home Affairs, with 86 branches now offering the service.
