Capitec’s market cap tops $30 billion, regains title as Africa’s most valuable bank

Capitec Bank has returned to the top of Africa’s banking sector after its market value climbed above $30 billion, helped by a steady rise in its share price on the Johannesburg Stock Exchange. The South African lender, known for its large retail customer base, overtook FirstRand to regain its position as the continent’s most valuable bank.

Market data tracked by Shore.Africa shows Capitec’s share price rose 2.9 percent over the past month, lifting its market cap to R504.1 billion ($30.4 billion) at the time of drafting this report. In contrast, FirstRand’s shares slipped 1.26 percent over the same period, bringing its market value down to R495.8 billion ($29.97 billion). The shift reflects growing investor confidence in Capitec’s earnings outlook and its expanding presence in both retail and business banking.

Capitec upgraded on SME growth

The rebound follows an upgrade earlier this year by JPMorgan, which moved Capitec’s rating from neutral to overweight and raised its price target to R540. The investment bank pointed to growth opportunities in South Africa’s informal small business segment, which remains largely underserved by traditional lenders. JPMorgan estimates there are nearly two million informal businesses in the country, with about 75 percent still operating outside formal banking channels.

According to the bank, this segment generates an annual profit pool of roughly R65 billion, offering room for expansion. JPMorgan added that Capitec’s formal small business banking operations already contribute about 5 percent of earnings and could grow at a 36 percent compound annual rate through fiscal 2028. That growth is expected to support the group’s broader earnings outlook, estimated at about 18 percent over the same period.

Capitec expands access, grows clients

Capitec’s rise reflects a move that began 25 years ago when Michiel Le Roux, alongside Jannie Mouton and Riaan Stassen, launched the bank to serve South Africa’s emerging middle class. What started as a lender focused on lower-income customers has since grown into a full-service bank offering savings, credit, insurance and payment solutions to individuals and businesses.

Expansion beyond South Africa has also contributed to growth. Capitec acquired a 40.66 percent stake in Polish online lender Avafin in 2017 and increased its holding to 97.69 percent in 2024 through a €26.3 million ($27.1 million) deal. At home, the bank simplified fees in March 2025, lowering transaction and merchant costs. The changes helped attract new clients and boosted transaction volumes, supported by its mobile offering, Capitec Connect.

Capitec Bank’s Walletdoc deal boosts e-commerce

Late last year, Capitec agreed to acquire digital payments firm Walletdoc for up to R400 million ($23.5 million). The transaction includes R300 million ($18.2 million) in cash and a deferred earn-out of R100 million ($6.05 million). Founded in 2015 by Leonard Shenker and Dan Wagner, Walletdoc provides digital wallets, instant electronic transfers, payment links and real-time merchant payouts for businesses and platforms.

Capitec said the acquisition will strengthen payment tools for business clients and expand e-commerce for personal banking customers. The deal reflects the lender’s push into digital services as competition intensifies across Africa. With its market value above $30 billion, the bank’s performance signals investor confidence, while expansion in small-business banking and digital payments supports further growth over the medium term for shareholders.