South Africa’s biggest bank by clients, Capitec Bank, has reported its first annual profit above $1 billion, marking a steady finish to its 2026 financial year. The lender said active clients rose to a record 26 million, extending a five-year pattern of growth in its retail banking base and reinforcing its position in the country’s competitive banking sector.

According to its annual report, Capitec’s profit climbed 22 percent to R16.84 billion ($1.025 billion) in 2026, up from R13.75 billion ($837.1 million) a year earlier. The bank attributed the increase to higher lending activity, stronger fee income, and continued uptake of digital services, even as consumers faced pressure from higher living costs.

Capitec Bank head office in Johannesburg, showcasing the hub of Africa’s most valuable bank.

Net interest income rises 19 percent

Net interest income rose 19 percent to R24.1 billion ($1.46 billion), supported by increased lending across both consumer and small business segments. Personal and business loan disbursements grew 27 percent and 48 percent, respectively, reflecting steady demand for credit despite tighter economic conditions. At the same time, interest income expanded 14 percent, underlining the bank’s continued reliance on retail lending.

Non-interest income also contributed to the result. Net transaction and commission income rose 9 percent to R15.43 billion ($940 million), while net insurance income increased 38 percent to R5.22 billion ($318 million). Together, these streams lifted total non-interest income to R28.3 billion ($1.72 billion), compared with R23.8 billion ($1.44 billion) the previous year.

The results are the first full-year figures under chief executive Graham Lee, who took over in July. He succeeded long-time CEO Gerrie Fourie, who led the bank through a period of consistent earnings growth built on low-cost banking and unsecured lending.

Lee now faces a more competitive market, with rivals including Nedbank Group and new entrant OM Bank targeting similar customer segments. Investor sentiment remained firm. Shares of Capitec on the JSE rose slightly, giving the bank a market value of R514.8 billion ($31.33 billion), ahead of FirstRand at R501.5 billion ($30.52 billion) at the time of reporting.

Capitec Bank interior office space showing modern workspace design and corporate environment.

Capitec boosts assets, equity, dividend growth

Capitec traces its origins to 2001, when founders Michiel Le Roux, Jannie Mouton and Riaan Stassen set out to build a low-cost lender focused on underserved consumers. Over time, it has expanded into a full-service bank offering savings, credit, insurance and payment tools.

Recent growth has also been supported by expansion outside South Africa. The bank increased its stake in Polish online lender Avafin to 97.69 percent in 2024, following an earlier investment in 2017. Domestically, it has pushed deeper into digital payments and services, including the acquisition of Walletdoc for up to R400 million ($23.5 million).

It also continues to expand its mobile platform, Capitec Connect. The balance sheet also strengthened. Total assets rose 10 percent to R263.28 billion ($16.02 billion), while equity attributable to shareholders increased to R59.44 billion ($3.61 billion). Retained earnings climbed to R53.53 billion ($3.25 billion).

The board proposed a final dividend of R53.60 ($3.26) per share, bringing total dividends for the year to R79.80 ($4.85), up from R65.10 ($3.96) the year before, reflecting continued returns to shareholders alongside steady earnings growth.