Capitec Bank reports 30% profit increase to R13.74 billion

Capitec Bank reported a 30% increase in headline earnings for the year ending February 2025, reaching a record profit driven by strong growth in both net interest and non-interest income. The bank saw its share price surge and added 1.5 million new digital clients, expanding its online user base to 14 million. Non-interest income now constitutes a significant portion of total revenue, reflecting Capitec's successful diversification efforts. However, customers have faced repeated disruptions to digital banking services, leading to frustration, particularly during critical payment periods. Despite these issues, Capitec rewarded shareholders with a final dividend that exceeded analyst expectations and issued large executive payouts, including a substantial increase for outgoing CEO Gerrie Fourie. The bank's ongoing challenge will be maintaining its growth and digital reliability amid rising competition in the low-income market segment.