Capitec flags up to 25% surge in full-year earnings

Capitec Bank is poised to deliver a massive jump in full-year earnings, signalling that its aggressive pivot from a traditional lender to a diversified financial ecosystem is yielding high-growth results.

Capitec shares hit a new record high, above R4600-a-share and valuing the group at over R534 billion on Wednesday.

In a trading statement released on 11 February 2026, the JSE-listed retail bank informed shareholders that headline earnings per share (Heps) are expected to rise by as much as 25% for the financial year ending 28 February 2026.

The bank anticipates Heps to come in between 14 294 cents and 14 890 cents, a significant climb from the 11 912 cents reported in 2025. This trajectory places the group’s total headline earnings in the range of R16.5 billion to R17.2 billion.

Capitec’s growth in 2026 was defined by a deliberate “long-term value proposition” centred on accessibility.

In March 2025, the group implemented a radically simplified fee structure that slashed transaction costs and reduced merchant point-of-sale (POS) pricing.

While fee reductions typically pressure margins, Capitec reported that a surge in client acquisition and transaction volumes more than offset the impact.

This momentum was further bolstered by high adoption rates of value-added services and Capitec Connect, its mobile virtual network operator (MVNO), which continues to expand its digital footprint.

Unlocking the insurance engine

Beyond traditional banking, the group’s insurance division has become a critical performance driver. As loan disbursements increased, income from associated credit life insurance products rose in tandem.

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Additionally, a rise in active funeral and life cover policies led to higher sums assured, reflecting what management described as “stronger client engagement” with its diversified product range.

The bank also benefited from a stabilising macroeconomic environment, which spurred increased lending activity across both personal and business banking.

New credit innovations, including purpose-specific loans and offerings for clients with multiple income sources, drove lending income higher.

Crucially, the bank noted that the quality of its loan book has improved, with credit loss provisions moving in line with this healthier profile.

Business banking, in particular, has officially transitioned from its “build phase” into a “growth phase,” supported by successful client retention strategies. The full financial results are expected to be published on Sens on or about 22 April 2026.

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