From Wall Street’s JPMorgan to São Paulo’s Nubank, customer numbers define dominance. Now, Cape Town’s own Capitec is stepping onto that global stage with 25 million active clients and record-breaking growth.
Headline earnings rocketed 26% to R8.03 billion, revealing a model that’s not just surviving South Africa’s economic challenges but thriving amid them.
With a return on equity (ROE) climbing to 31% from 29% and an interim dividend hiked 26% to 2,620 cents per share, Capitec’s voice is now unmistakable.
But can this retail banking disruptor, born from a simple vision of affordable finance for the masses, leverage its 25 million-strong ecosystem to crash the global big leagues?
Client Explosion: From Local Hero to Continental Powerhouse
Capitec’s client base now stands at 24.99 million active users, including point-of-sale (POS) merchants, a near-doubling from just five years ago.
Personal banking clients alone swelled 7% to 24.4 million, with 9.4 million (38% of actives) now “fully banked,” up 11% YoY as more South Africans embrace comprehensive services like loans and insurance.
This isn’t mere headcount inflation; it’s sticky, high-engagement growth fuelled by digital natives.
At the heart? The Capitec app, now boasting 13.8 million users (a 12% jump), is where 91% of transaction volumes, excluding system-generated ones, are handled digitally, up from 89% last year.
Transaction volumes overall climbed 11% to nearly 6 billion, with digital volumes exploding 29%. In a country where traditional banks still dominate with outdated branches, Capitec’s app-first ethos mirrors global disruptors like Revolut but is tailored for Africa’s unbanked masses.
The result: a credit loss ratio ticking up slightly to 7.9% (from 7.6%), yet manageable thanks to sharper credit scoring that drove personal loan disbursements 32% higher.
This scale positions Capitec as Africa’s retail banking blueprint, but globally? Nubank’s 100 million clients set a high bar; Capitec would need exponential cross-border plays to compete.
Financial Fireworks: Earnings, Deposits, and Dividend Delight
The numbers paint a picture of relentless efficiency. Net interest income surged 23% to R11.86 billion, boosted by 40% overall loan disbursements (R45.2 billion) and an 11% deposit rise to R184.6 billion in total funding.
Business loans? Up 42% to R7.2 billion disbursed, signalling Capitec’s pivot beyond consumers into SME financing.
Interest expenses, meanwhile, dipped 8% to R4.66 billion, a windfall from South Africa’s repo rate cuts.
Non-interest income, the secret sauce comprising 65% of operations post-impairments, jumped 19% to R13.36 billion, led by value-added services (VAS) at R2.69 billion (+36%) and net insurance income at R2.37 billion (+45%).
Operating expenses rose a controlled 16% to R9.98 billion, keeping the cost-to-income ratio lean at 46%.
READ ALSO:How Capitec Became Africa’s Most Valuable Bank in 2025
At a R409 billion market cap (about $23.8 billion USD) as of October 1, Capitec trades at a premium to many emerging-market peers, reflecting investor bets on its 31% ROE, a level that rivals U.S. digital upstarts like SoFi.
Yet, with global heavyweights like HSBC at a $150 billion market cap, Capitec’s path to the “big league” (think top 100 global banks by assets) demands diversification beyond South Africa’s borders.
Innovation Engine: Capitec Connect and Beyond
Capitec isn’t resting on lending successes. Its telecom arm, Capitec Connect, more than doubled net income to R165 million, with actives hitting 1.1 million (up 83%) and data usage surging over 100% to 14.9 petabytes.
Voice minutes? Triple to 311 million. This “super app” strategy of bundling banking, insurance, and now connectivity echoes WeChat’s ecosystem in China, encouraging loyalty in a market where 40% of adults remain underbanked.
Insurance premiums ballooned, and VAS like remittances and payments are the growth accelerators. As CEO Nalin Leclercq noted in the results, “We’re building a seamless financial life platform.”
With capital adequacy at 33% (down slightly from 37% but well above regulatory mins), Capitec has the war chest for bold moves.
International Venture: AvaFin’s 48% Sprint
Enter AvaFin, Capitec’s international lending vehicle, which grew its gross loans 48% to R3.4 billion and client count 26% to 250,000.
Disbursements soared over 100% to R6.2 billion (on a comparable basis), adding R1.7 billion in interest income but also R761 million in impairments, highlighting the risks of emerging-market lending.
Focused on unsecured loans in select African and Latin American markets, AvaFin contributed R124 million to headline earnings, up from R66 million last year.
This is Capitec’s global foothold, with analysts pointing to a “pipeline of international expansion” as the bank eyes underserved pockets in Nigeria and beyond.
Compared to Nubank’s pan-Latin conquest or Revolut’s European blitz (40 million users, $45 billion valuation), Capitec’s start is modest. But with its low-cost model, including average fees under R10 per transaction, it could replicate TymeBank’s Kenyan venture at scale.
The African Blueprint
Capitec’s story is Africa’s retail banking masterclass: democratise access, digitise ruthlessly, and diversify smartly. With 25 million clients as its launchpad, it’s not just pushing boundaries; it’s redrawing them.
The big league? Not tomorrow, but with this trajectory, Capitec could be the next Nubank on steroids. Watch this space; the ZAR might just go global.
Capitec Bank Made Easy
For everyday banking needs, Capitec Bank customer service remains a reliable point of support, easily reachable through the official Capitec contact number.
Clients can access their accounts anytime via Capitec login on the web or through the convenient Capitec Bank app.
For new users, the Capitec app download process is simple, after which you can use the Capitec app login to manage accounts, transfer funds, or pay bills.
With branches often listed as Capitec open now, customers can enjoy both in-person and digital banking.
Additionally, Capitec cellphone banking provides a quick and secure way to transact without needing internet access.
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, climate change, and digital finance at Africa Digest News.
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