Capitec overtakes FirstRand as Africa’s most valuable bank at $34.5 billion

The race among Africa’s biggest banks has a new leader. South Africa’s Capitec Bank has overtaken FirstRand to become the continent’s most valuable banking group, with a market capitalization of $34.5 billion. Capitec’s rise also puts it in third place among Africa’s most valuable listed companies, behind Gold Fields. The latest change comes after Capitec shares gained 2.2 percent over the past month, lifting its market cap to R561.2 billion ($34.5 billion).

FirstRand, meanwhile, has seen its shares rise 1.6 percent over the same period, taking its market capitalization to R551.5 billion ($34 billion). Standard Bank, another of South Africa’s largest lenders, gained 0.5 percent, bringing its market value to R535.5 billion ($33 billion). Capitec’s stronger share price follows a year of solid earnings growth. For the year ended Feb. 28, 2026, the Stellenbosch-based bank reported headline earnings of R16.8 billion ($1.03 billion), up 23 percent from R13.7 billion ($844 million) a year earlier.

Transaction volumes climb 11 percent 

The bank attributed the increase to higher transaction activity, stronger net interest income and continued growth across its insurance and fintech businesses. Total income from operations after credit impairments rose 19 percent to R42.44 billion ($2.61 billion). Net non-interest income increased 19 percent to R28.34 billion ($1.74 billion) from R23.88 billion ($1.47 billion), accounting for 67 percent of total operating income after credit impairments. Net interest income also rose 19 percent to R24.08 billion ($1.48 billion).

The increase in net interest income was supported by a 14 percent rise in interest income from lending to R24.14 billion ($1.48 billion), while interest expenses fell 8 percent to R9.23 billion ($570 million). Capitec’s customer base continued to expand during the year. Active clients reached 25.8 million, while the number of active banking app users rose 19 percent to 15.3 million from 12.9 million. Customers also made more transactions through the bank. Total transaction volumes increased 11 percent to 12.31 billion, while digital and value-added services transactions climbed 26 percent to 3.18 billion.

Capitec widens digital revenue streams

The growth was particularly strong in Capitec’s fintech operations, which include value-added services and Capitec Connect. Non-interest income from the businesses rose 38 percent to R6.1 billion ($375.9 million) from R4.4 billion ($271 million). Value-added services income increased 34 percent to R5.65 billion ($348.2 million), helped by send cash and newer products such as Airtime Advances. Income from Capitec Connect more than doubled to R442 million ($27.2 million) from R193 million ($11.9 million).

Insurance also made a larger contribution to the group’s results. Net insurance results rose 38 percent to R5.22 billion ($321.8 million) from R3.78 billion ($233 million). Credit Life results increased 28 percent to R2.43 billion ($150 million), while Funeral and Life Cover income rose 49 percent to R2.79 billion ($172 million). Capitec said the increase followed the migration of policies to Capitec Life’s own license and the termination of its arrangement with Sanlam.

The combination of stronger earnings, a growing customer base, and increased digital activity has given investors more reasons to value Capitec highly. The gains have helped the bank reclaim the top spot among Africa’s listed banking groups, putting it ahead of FirstRand as the two lenders compete for the continent’s highest banking valuation. But the race is far from over.