Capitec is expecting an increase in earnings despite elevated inflation and higher interest rates putting pressure on consumers.
Headline earnings per share (HEPS) is expected to increase between 18% and 20% to between R82.15 and R83.54 cents from R69.62 in the same period last year.
Earnings per share (EPS) is also expected to rise by between 18% to 20%, reaching between R81.74 and R83.12 compared with the R69.27 previously.
The bank attributed the expected improvement in earnings to continued growth across its diversified business, supported by an expanding customer base and increased transaction activity.
READ: Capitec posts R16.8bn headline earnings as clients show appetite for credit
Diversified income streams boost performance
Capitec posted a 23% increase in headline earnings to R16.8 billion for the financial year ended February 2026. This performance was also due to a balanced increase in income streams, with net income rising 18% to R14.1-billion and non-interest income, including transactions, Capitec Connect, and insurance, increasing by 19% to R28.3-billion.
“Personal Banking clients grew to more than 26 million and volume growth was supported by higher average transaction values, with particularly solid growth in card transactions. Business Banking showed substantial growth in active clients as well as lending and transactional volumes.
“The number of point-of-sale merchants and the use of Capitec Pay continued to grow. Increased transaction frequency per client, together with higher average transaction values, contributed to continued growth in income from ValueAdded Services,” the bank said.
Credit provisions and operational efficiency
However, the bank’s credit impairment charges increased as it incorporated updated macroeconomic scenarios into its forward-looking provisions. According to the bank, the quality of its lending book was maintained.
Insurance products, including Credit Life and Funeral Cover, showed improved performance due to lower claims ratios and increased investment income.
Capitec said operating expenses remained well controlled, with technology-driven efficiencies helping to support profitability and returns.
- Capitec expects headline earnings per share (HEPS) to increase between 18% and 20%, reaching R82.15 to R83.54 cents from R69.62 last year.
- Earnings per share (EPS) is also anticipated to rise by 18% to 20%, reaching between R81.74 and R83.12 compared with R69.27 previously.
- The bank reported a 23% increase in headline earnings to R16.8 billion for the financial year ended February 2026.
- Capitec's net income rose 18% to R14.1 billion and non-interest income increased by 19% to R28.3 billion.
- Credit impairment charges increased due to updated macroeconomic scenarios, but the quality of the lending book was maintained, and operating expenses remained well controlled.
Capitec is expecting an increase in earnings despite elevated inflation and higher interest rates putting pressure on consumers.
READ: Capitec posts R16.8bn headline earnings as clients show appetite for credit
Capitec posted a 23% increase in headline earnings to R16.8 billion for the financial year ended February 2026.
“Personal
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However, the bank's credit impairment charges increased as it incorporated updated macroeconomic scenarios into its forward-looking provisions.
Insurance products, including Credit Life and Funeral Cover, showed improved performance due to lower claims ratios and increased investment income.
Capitec said operating expenses remained well controlled, with technology-driven efficiencies helping to support profitability and returns.
