Capitec Bank (CPI) investor relations material

Executive summary

• Client base grew 7% to 26.6 million, with 16.5 million active app users monthly and 10.4 million fully banked clients.

• High-income earners (earning above ZAR 50,000) up 22%, gig economy and entrepreneurs up 138%.

• Youth segment (18–25) reached 4.9 million clients, 78% of whom are app users; credit card uptake among youth up 57%.

• Focus on AI-driven fraud prevention, saving clients ZAR 229 million from scams in six months.

• Interim dividend per share increased 19% to 3,110 cents.

Financial highlights

• Headline earnings up 19% year-over-year to ZAR 9.5 billion.

• Net interest income up 7% to ZAR 12.7 billion; non-interest income up 21% to ZAR 16.1 billion, now 70% of operational income.

• Operating expenses rose 5% to ZAR 10.5 billion; cost-to-income ratio improved to 36% from 40%.

• Credit loss ratio increased from 7.9% to 8.4%, driven by proactive provisioning and credit book growth.

• Return on equity steady at 31%.

Outlook and guidance

• Loan book growth expected to continue, though at a slower pace due to macroeconomic headwinds.

• Continued focus on digital innovation, client safety, and expanding product ecosystem.

• Ongoing investment in AI, fraud detection, and client experience.

• Operating expense growth expected to remain moderate, with benefits from prior tech investments.

• The business aims to become the leading payments provider and expand embedded finance capabilities.