Capitec sells rental finance unit to Sasfin in $4 million deal 

Capitec Bank, South Africa’s largest bank by customer numbers, has agreed to sell its rental finance subsidiary, Capitec Rental Finance (CRF), to Sasfin Holdings for R201 million ($4 million) as part of a move to sharpen its focus on core banking operations. 

The transaction will see Capitec transfer full ownership of CRF to Sasfin while providing the business with a secured R1.6 billion ($32.25 million) credit facility to support its existing rental receivables portfolio.

Sasfin to integrate CRF business 

Established in 2011, CRF provides asset financing solutions to businesses across various industries. Capitec acquired the rental finance company in 2019 through its purchase of Mercantile Bank, which was later rebranded as Capitec Business. 

Although CRF has built a profitable rental finance operation, Capitec said the business no longer fits within its long-term strategic priorities. 

“The board believes CRF would benefit from being integrated with a specialist operator that has deeper sector expertise,” Capitec said. 

Sasfin will combine CRF with Sunlyn, its rental finance subsidiary, creating a larger platform with established experience in equipment and asset financing. 

The transaction consideration of R201 million will be paid in cash at closing, subject to customary adjustments.

Sasfin’s return to specialised finance 

Sasfin, which previously operated as a banking competitor to Capitec, has shifted its business model after exiting traditional banking activities to focus on wealth management and specialist finance. 

The group sold its Capital Equipment Finance and Commercial Property Finance loan books to African Bank in 2023 in a deal valued at more than R3 billion ($60.47 million). 

Sasfin has also undergone a broader restructuring of its operations, including the rebranding of Sasfin Wealth to Otto1890, as the company concentrates on selected financial services segments. 

The company’s banking division previously faced regulatory scrutiny after allegations linked to money laundering and illicit financial flows. Sasfin was fined R210 million ($4 million) by South Africa’s Prudential Authority in 2024.

Capitec expands beyond retail banking 

Capitec was founded in 2001 by Michiel le Roux, Jannie Mouton and Riaan Stassen as a low-cost banking alternative aimed at expanding access to financial services. 

Over the past two decades, the lender has grown into one of South Africa’s largest financial services groups, offering savings, credit, insurance and payment solutions. 

Under CEO Graham Lee, who took over leadership of the group on July 19, 2025, Capitec serves more than 26 million clients and operates about 880 branches, compared with 25,000 customers and 55 branches during its early years.