Fintech services, which include revenue from MVNO Capitec Connect and other value-added services like the recently launched airtime advance, now account for just over a quarter of Capitec Bank’s group earnings.
According to Capitec’s interim results for the six months to 31 August, 26% of the bank’s total earnings for the period came from its fintech division alone, representing a three-percentage point increase from the same time the previous year.
“Client adoption of VAS (value-added services) and Capitec Connect continued to grow, leading to an increase in transaction volumes,” Capitec CEO Graham Lee said in commentary alongside the results.
“VAS airtime advances were launched in August 2025, allowing clients to purchase airtime on networks other than Capitec Connect when their available funds are insufficient for making calls, sending messages or using data.”
Net income from Capitec Connect grew to R165-million from R69-million in 2024, with the number of active clients in the last three months reaching 1.1 million, up from about 600 000 in 2024.
Fintech’s contribution of R2.9-billion to group headline earnings represents a 40% increase from the previous year’s figure of R2-billion. Other contributors to headline earnings, which grew by 26% year on year, were the personal banking segment (41%), insurance (26%), business banking (5%) and European loans business AvaFin (2%).
Capitec’s IT spending
In the personal banking segment, Capitec’s customer base continues to grow, having reached 24.4 million by the end of the reporting period, up from 22.8 million at the same time in 2024. As the bank’s customer base expands, so, too, does the opportunity to grow its MVNO – mobile virtual network operator – customer base. Capitec’s digitally active customers are also on the rise.
Read: The South African bank racing ahead of its peers in IT spending growth
“The volume of payments on our digital channels continued to grow significantly, driven by an increase in banking app clients to 13.8 million from 12.3 million in 2024. The number of Apple Pay, Garmin Pay, Google Pay and Samsung Pay users grew from 0.7 million in 2024 to 1.4 million,” said Lee.
Capitec also upped its IT spending in the period, which grew by 33% year on year to R1.6-billion.
Read: Capitec targets migrant wallets with cross-border transfers
Overall, a 26% rise in headline earnings to R8-billion was accompanied by a 26% increase in the interim dividend per share of R26.20/share. Capitec shares were up 2% at R3 545.92/share at 9.11am, just after markets opened on Wednesday morning. – © 2025 NewsCentral Media
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