Capitec Bank (CPI) H1 2026 earnings summary

Executive summary

• Headline earnings rose 26% to ZAR 8.0 billion for the six months, with ROE at 31% and active clients reaching 25 million, including strong growth in youth and higher-income segments.

• Diversified income streams: 65% of income now from non-credit business, with fintech and insurance each contributing 26% to group earnings.

• Continued focus on innovation, digital transformation, and expanding business banking, fintech, and product offerings across banking, credit, insurance, and fintech.

• Interim dividend per share increased 26% to 2,620 cents, reflecting strong profitability and capital position.

Financial highlights

• Net interest income up 27% year-over-year; non-interest revenue up 19% to R13.4 billion, with significant contributions from transaction, VAS, Connect, and insurance.

• Credit loss ratio at 7.9% (including AvaFin); excluding AvaFin, 6.8%, down from 7% last year.

• Operating expenses increased 16% to R10.0 billion, with IT expenses up 33% and ongoing investment in technology and people.

• Return on equity increased to 31%.

• ZAR 203 million in fee reductions given back to clients.

Outlook and guidance

• Expect stable personal banking credit loss ratio for the full year, barring major economic shifts.

• No change to dividend payout policy (55% for the full year); strong capital position maintained despite Basel IV impact.

• Focus on scaling business banking, enterprise payments, global expansion through AvaFin, and developing a single payment ecosystem.

• Management aims to maintain growth momentum and client trust, with a new CEO appointed in July 2025.