Capitec Reports Record 30% Earnings Growth as Digital Strategy Pays Off
Video credit to: Moneyweb
Strong Financial Performance Across All Segments
Capitec Bank has reported impressive financial results for the year ending February 2025, with headline earnings surging 30% to R13.7 billion. The bank’s diversified business model shows:
- Personal banking: 45% of total earnings
- Insurance: 25% contribution
- Strategic initiatives: 23% share
- Business banking: 5% of earnings
Digital Transformation Driving Growth
Outgoing CEO Gerrie Fourie highlighted the bank’s successful digital strategy during an interview with Dudu Ramela:
“87% of our transactions are now digital or card-based. This deliberate shift over the past five years helps us understand our clients better while improving security.”
Key Digital Achievements:
- Card and online payments up 18% to 2.4 billion transactions
- Capitec Connect MVNO showing exceptional growth
- New international payment solution with R175 flat fee
Client-Centric Approach
Fourie emphasized Capitec’s focus on simplicity and transparency in pricing:
“Our whole philosophy is high-volume, low-margin business. We’ve standardized pricing across services to create clear value for clients.”
Business Banking Growth
The bank’s SME segment grew 15% to 218,207 active clients, despite giving back R300 million in pricing benefits to customers.
Leadership Transition and Future Outlook
As Fourie prepares to hand over to incoming CEO Lee, he expressed confidence in Capitec’s future:
“We’ve built strong leadership teams across all divisions. I’m very positive about continued strong growth in coming years.”
The bank continues expanding its ATM network (now at 9,000 units) while encouraging digital payments for better security and convenience.
Source: Moneyweb