Capitec Bank, a South African bank, recorded a 23% increase in its annual profit for the fiscal year ending in late February 2026, driven by a strong expansion in its credit activity and an increase in interest income.
The group’s overall profit reached 16.8 billion rand (1 billion USD), compared to 13.7 billion rand (780 million USD) a year earlier, supported by an increase in loan volumes amid sustained demand for financing.
Net interest income rose by 19% to 24.1 billion rand (1.4 billion USD), while loan income increased by 14%. Loan disbursements surged by 34% to reach 98.3 billion rand (5.7 billion USD), reflecting continued strong dynamics in consumer and business credit.
However, this growth is accompanied by a moderate deterioration in asset quality. Credit loss provisions increased by 21% to 9.98 billion rand (600 million USD), while the default ratio rose from 7.5% to 8.1%, indicating an increase in delinquencies in a more active credit environment.
Despite this pressure, profitability remains high, with a return on equity of 31%, compared to 29% a year earlier, confirming the strength of the bank’s economic model.
Capitec also continued to diversify its activities, particularly in insurance, digital services, and fintech Avafin, all of which experienced sustained growth. The final dividend was raised to 53.60 rand per share (3.1 USD), up 23%.
