Capitec Bank (CPI) investor relations material

Executive summary

• Achieved 26 million active clients, up 7% year-over-year, with 15 million active app users, up 19%, reflecting 25 years of innovation and client-centric growth.

• Headline earnings rose 23% to ZAR 16.8 billion for the year ended February 2026.

• Maintained a culture prioritizing client value over short-term profits, driving sustainable shareholder value.

• Diversified income streams with strong growth in fintech, insurance, and business banking.

• Digital transformation accelerated, with half of all payments now digital and digital payment volumes up 25%.

Financial highlights

• Net interest income after credit impairments increased 18% to ZAR 14.1 billion.

• Non-interest income grew 19% to ZAR 28.3 billion, driven by transaction, VAS, Connect, and insurance.

• Credit loss ratio at 8.1%, within target range, with credit impairment charge up 21% overall.

• Operating expenses rose 12% to ZAR 20.2 billion, supporting a return on equity (ROE) increase to 31%.

• Net insurance income up 38%, tax income up 34% following full-year sales on own license.

Outlook and guidance

• Focus on continued digital innovation, expanding business banking, and international growth, with ongoing investment in digital and direct distribution channels.

• Credit loss ratio anticipated to tick up slightly due to strong book growth and increased unsecured lending, but within planned appetite.

• Business banking loan and deposit growth expected to maintain current 30% run rate.

• Plans to accelerate enterprise payments, embedded finance, and data/media solutions.

• International expansion strategy in early stages, with dedicated teams exploring new markets and segments.