FirstRand tops Capitec as Africa’s most valuable lender, eyes Ghana and Nigeria

South Africa’s FirstRand has reclaimed its position as Africa’s most valuable lender, narrowly overtaking Capitec Bank as investors respond to its expansion plans across the continent. The Johannesburg-based lender, led by CEO Mary Vilakazi, is now valued at R520.2 billion ($31.2 billion), compared with Capitec’s R519.4 billion ($31.1 billion), after its shares rose 0.11 percent on the Johannesburg Stock Exchange while Capitec slipped 0.64 percent.

Vilakazi told Bloomberg that FirstRand is exploring opportunities in West and Southern Africa, focusing on Ghana and Nigeria as key markets for growth. “From a macroeconomic point of view, Ghana and Nigeria are actually going through a better period than in the past because of the structural reforms they have embarked upon,” she said.

FirstRand leads regional financial services growth

FirstRand also plans to strengthen its operations in Zambia, where it acquired Standard Chartered Plc’s wealth and retail business last year. “It’s one of the standout performers in the second half of 2025,” Vilakazi said.

The bank’s expansion comes as South African lenders increasingly look beyond domestic borders. FirstRand, Africa’s largest financial services group by market value, operates through a portfolio that includes FNB, RMB, WesBank, and Aldermore, with businesses in South Africa, the UK, and regional African markets.

Vilakazi said the bank is monitoring Kenya’s planned tenfold increase in the minimum capital requirement for banks by 2029, considering opportunities to enter East Africa’s largest economy. Despite these plans, South Africa remains FirstRand’s main market, accounting for 81 percent of earnings in the six months to December.

South Africa reforms could accelerate growth

The bank reported record interim earnings, driven by growth in fees, commissions, and lending. Normalized profit rose 11 percent to R23.2 billion ($1.4 billion), while non-interest revenue climbed 12 percent, supported by insurance, global-markets performance, and private equity realizations. Net interest income increased 7.7 percent, reflecting stronger loan growth across South Africa, broader Africa, and the UK.

Looking ahead, FirstRand expects South Africa’s GDP growth to average 1.8 percent annually over the next three years, potentially accelerating to 3 percent if reforms in energy, infrastructure, transport, and logistics take hold. Vilakazi emphasized that stable politics and low inflation have improved the environment for corporate and consumer credit, with demand already showing signs of picking up.