South African billionaire Tshepo Mahloele to pocket $22 million dividend after $840 million stake sale

South African billionaire investor Tshepo Mahloele, founder and Chairman of Harith General Partners and Lebashe Investment Group, is poised to receive about $22 million in dividends from Capitec Bank after the lender reported stronger earnings and declared a higher full-year payout.

The Stellenbosch-based bank approved a dividend of R9.27 billion ($563 million) for the year ended Feb. 28, 2026, reflecting robust profit growth and expanding customer activity in South Africa’s retail banking sector.

Capitec’s full-year dividend translates to R79.8 ($4.85) per share, with payment scheduled for Oct. 27. The payout aligns with its policy of distributing 55% of headline earnings, which rose to R16.8 billion ($1.02 billion). The increase underscores the bank’s ability to sustain growth despite ongoing pressure on consumers from inflation and higher living costs.

Profit growth drives higher shareholder returns

The improved dividend follows a strong financial performance. Capitec reported a 22.46% increase in profit, climbing from R13.75 billion ($837 million) to R16.84 billion ($1.02 billion). Growth was supported by higher lending volumes, increased digital adoption, and steady expansion in non-interest income streams.

Net interest income rose 19% to R24.1 billion ($1.46 billion), driven by strong lending across consumer and small business segments. Loan disbursements increased sharply, with personal loans up 27% and business lending surging 48%, reflecting resilient credit demand.

Non-interest income also contributed meaningfully. Net transaction and commission income increased 9% to R15.43 billion ($940 million), while insurance income jumped 38% to R5.22 billion ($318 million). Combined, total non-interest income reached R28.3 billion ($1.72 billion), reinforcing Capitec’s diversified revenue base.

Mahloele trims stake but retains significant position

Mahloele, founder of Harith General Partners and Lebashe Investment Group, remains among Capitec’s top shareholders despite recently selling $840 million worth of shares, reducing his stake. He now holds 4.47 million shares, equivalent to 3.85% of the bank, down from a previous 6.59% holding.

Based on the latest dividend declaration, his stake will yield approximately R356.88 million ($21.35 million), lower than the R498.33 million ($26 million) received in the prior year due to the reduced shareholding.

Capitec expands scale and balance sheet strength

Founded in 2001 by Michiel le Roux, Jannie Mouton, and Riaan Stassen, Capitec has grown into South Africa’s largest digital retail bank. Its simplified banking model and focus on affordability have enabled it to attract millions of customers.

The bank’s total assets increased 10% to R263.28 billion ($16.02 billion), while shareholder equity rose 17% to R59.44 billion ($3.61 billion). Retained earnings climbed 19.25% to R53.53 billion ($3.25 billion), reflecting continued profitability and reinvestment capacity.

Why this matters

Capitec’s results highlight the resilience of South Africa’s retail banking sector, even amid economic headwinds. The bank’s ability to grow lending, expand digital services, and increase shareholder payouts positions it as a benchmark for emerging-market financial institutions.

For investors, the rising dividend signals consistent cash generation and disciplined capital allocation. For stakeholders like Mahloele, it reinforces the value of long-term exposure to high-growth financial assets in Africa’s evolving banking landscape.

The performance also reflects broader trends in African financial services, where digital banking models are scaling rapidly, similar to other high-growth institutions leveraging technology to deepen financial inclusion.