Capitec’s bank era ends as a bigger business takes shape

Stellenbosch – Capitec is positioning itself as more than a conventional bank as it expands into telecommunications, insurance, digital services and government-linked services while a generation of long-serving executives begins to leave the group.

According to BusinessTech, Capitec reported a 19% increase in headline earnings to R9.5 billion for the six months ended 31 August 2026. Operating profit rose 21% to R12.63 billion, while headline earnings per share increased 19% to 8,262 cents.

The group has also formally dropped “Bank Holdings” from its corporate name, becoming Capitec Limited.

Moneyweb reported that shareholders approved the change, which took effect on 26 August, while the company’s JSE code, trading history and listing remained unchanged.

Capitec said the name change reflects its expansion beyond traditional banking.

“This reflects our growing focus on delivering a wider range of value-adding solutions to our clients,” the group said.

Active customers reaching

The expansion includes Capitec Connect, insurance products, a new stokvel account and Smart ID services offered in partnership with the Department of Home Affairs.

The group said it had processed more than 594,000 Smart ID applications since launching the service in March, with access expanded to 248 branches.

Capitec Connect has also grown rapidly, with active customers reaching 1.8 million in the latest six-month period, compared with 1.1 million a year earlier. Net income from the telecommunications business rose to R284 million from R165 million.

The broader diversification follows a strong full financial year. Capitec reported in April that headline earnings for the year ended February 2026 increased 23% to R16.8 billion, while active customers reached 26 million.

The group said its earnings were increasingly diversified across personal banking, insurance, fintech and business banking.

Departure of several long-serving figures

The transformation is also coinciding with the departure of several long-serving figures. Former CEO Gerrie Fourie retired in July 2025, while founding non-executive director Dr Chris Otto retired from the board in July 2026. Henk Lourens, an executive who has been with Capitec for 27 years, is due to retire at the end of November.

Capitec said Lourens had made “a lasting contribution to the growth of the group, helping to shape both the business and its culture.”

Despite its expansion, Capitec said it remains focused on affordable banking. The group said that for a second consecutive year it had not increased any banking fees and had reduced some charges.

The developments mark a significant shift for a group that began as a small lender in 2001 and has grown into South Africa’s largest bank by customer numbers, with about 25.7 million customers reported in its latest results.