South Africa’s Capitec reported headline earnings of R9.5 billion for the six months ended 31 August 2026, an increase of 19% from a year earlier. Headline earnings per share also rose 19% to 8,262 cents. The bank increased its interim dividend by 19% to 3,110 cents per share.
Net interest income grew 7% to R12.7 billion, while non-interest income advanced 21% to R16.1 billion. The cost-to-income ratio improved to 36% from 40%, which Capitec said reflected investments translating into scalable growth and stronger operating leverage. Capitec published the results on 30 September.
DIVERSIFIED INCOME SUPPORTED PROFIT GROWTH
Net non-interest income now contributes 70% of income from operations after credit impairments, up from 65% a year earlier. Chief executive Graham Lee said every one of the group’s South African businesses grew earnings in the period, even as economic growth remained muted. Active clients rose 7% to 26.6 million, while fully banked clients increased 11% to 10.4 million.
Operating leverage also improved as the cost-to-income ratio fell four percentage points. Operating profit rose 21% to R12.63 billion, according to BusinessTech. Net interest income after credit impairments fell 2% to R6.98 billion, as credit impairments rose by more than R1 billion.
DIVIDEND GROWTH TRACKED EARNINGS
The 19% increase in the interim dividend matched the rise in headline earnings per share. The board said the dividend reflected confidence in the sustainability of earnings; the interim dividend a year earlier was 2,620 cents.
Capitec also highlighted its recent change of name from Capitec Bank Holdings Limited to Capitec Limited, which it said reflected a growing focus on delivering a wider range of services to clients.