Capitec is expecting yet another massive rise in earnings for the 2026 financial year, with the group opening the taps of its loan book.
In a trading statement for the year ended 28 February 2026, the group said it expects earnings to increase by over 20% in its financial results, which will be released in April.
The group expects headline earnings per share to increase by 20% to 25%, to a range of 14,294 cents to 14,890 cents per share.
Having made headline earnings of R13.739 billion in FY25 (which was already a 30% rise), the group’s headline earnings for FY26 would be in the range of roughly R16.5 billion to R17.2 billion.
The group also expects its earnings per share to rise by 20% to 25%, to a range of 14,293 cents to 14,889 cents per share.
“The 2026 financial year was characterised by strategic decisions aimed at strengthening the group’s long-term value proposition and positioning the business for sustainable growth,” said Capitec.
The Personal and Business banking business introduced a simplified fee structure in March 2025, which included reductions in transaction fees and lower prices for merchant POS devices.
The bank also delivered continued growth across its client base and saw an increase in transaction volumes.
This strong operational momentum partially offset the effect of the new reduced fee structure, which resulted in net transaction and commission income growing in line with expectations.
Income from value-added services and Capitec Connect also continued to grow, supported by sustained growth in client adoption of the offerings.
An improvement in the broader macroeconomic environment also contributed to increased lending activity in Personal Business banking.
New credit products, such as purpose loans and loans designed for clients with multiple sources of income, along with the existing credit card client base, led to an increase in loans and lending income in Personal Banking.
The provision for expected credit loss coverage ratio moved in line with the improved quality of the loan book.
Business banking lending income grew as the bank transitioned from a build phase to a growth phase. This move was further supported by substantial client acquisition and retention.
As loan disbursements increased, Capitec said income from the associated credit life insurance products also increased.
There was also an increase in the number of active funeral and life cover policies. This contributed to higher sums assured and an increase in net insurance income.
The group said that the momentum reflected the stronger client engagement with its insurance offerings.
The financial results for the period should be released on SENS on 22 April 2026.
