Capitec Bank (CPI) H2 2025 earnings summary

Executive summary

• Headline earnings rose 30% to R13.7 billion, supported by net interest income growth and diversified income streams.

• Total clients reached 24 million, up 7.9%; fully banked clients rose 13.3% to 8.8 million.

• Strategic focus on digital innovation and expanding business banking, insurance and value-added services.

Financial highlights

• Net interest income after credit impairments grew 54% to R11.9 billion.

• Non-interest income rose 22% to R23.9 billion; value-added services and Capitec Connect grew 61% to R4.4 billion.

• Net transaction and commission income, excluding value-added services, increased 17% to R14.1 billion.

• Return on ordinary shareholder's equity improved to 29% from 26%; dividend payout ratio increased to 55%.

• Operating expenses rose 30% headline, or 14% excluding incentives and AvaFin, to R14.9 billion.

Outlook and guidance

• Capitec-funded secured home loans planned for mid-2025; repay-as-you-earn lending for SMEs and multiple-income earners planned for May 2025.

• Targeting 10 million Connect clients in 2–3 years, with continued technology, cloud and data investment to improve efficiency and client value.

• Business banking and insurance positioned for growth through new products and simplified pricing.

• Credit loss ratios targeted within the 8–8.5% range, supported by weekly reviews and sector monitoring.

• FLAC issuance planned at R10 billion, including R6 billion required in the first three years; issuance planned for January next year.