Capitec Bank, one of South Africa’s biggest retail banks founded by billionaire Michiel Le Roux, reported a 36.8 percent profit increase for the first half of the fiscal year 2025, reaching R6.43 billion.
This increase from R4.69 billion ($270.22 million) in the same time last year demonstrates Capitec Bank’s resiliency in a challenging global environment.
The spike was fueled by high net interest and non-interest revenue. Net interest income climbed by 20.4% to R9.65 billion ($555.8 million), boosted by a 14.4% increase in interest revenue from lending. Investment income also increased by 24.6 percent, reaching R4.43 billion ($254.48 million).
Capitec’s non-interest income increased by 22% to R11.27 billion ($647.6 million), led by a 29% increase in net transaction and commission income to R8.92 billion ($512.7 million). Value-added services and Capitec Connect income increased by 79 percent, indicating the bank’s diversification efforts.
Credit impairments fell 15% to R4.03 billion ($233 million) from R4.76 billion ($275 million) in the first half of 2024, increasing net interest income after impairments by 72% to R5.62 billion ($325 million). Capitec’s international footprint was further bolstered with the acquisition of AvaFin Holding, its new online lending arm.
Capitec was founded over two decades ago by Michiel Le Roux, Jannie Mouton, and Riaan Stassen, and has evolved to become one of South Africa’s major banks in terms of customer base.
Its business approach, which focuses on banking and loan products, has established it as a global leader in retail banking. Capitec’s product offerings include term loans, credit facilities, and credit cards, positioning it as a major player in the country’s financial environment.
Capitec’s balance sheet remained strong, with total assets increasing by 11.09 percent to R222.73 billion ($12.80 billion) as of August 31, 2024, from R200.5 billion ($11.53 billion) the previous year. The bank’s total equity increased from R39.35 billion ($2.26 billion) to R45.96 billion ($2.64 billion), strengthening its financial position.
In light of Capitec’s strong performance, the board of directors recommended a gross dividend of R20.85 ($1.206) per share, a 36% increase over the previous year. This amounts into a dividend payout of R2.42 billion ($139.49 million) for the six months ending August 31, 2024.