South Africa’s Capitec Bank is setting its sights on international growth after reporting a 23% increase in annual earnings. The bank, which dominates the country’s retail banking sector with over 26 million clients, saw its headline earnings swell to R16.8 billion for the fiscal year ending February 2026, compared to R13.7 billion the previous year.
Operating profit before tax also climbed by 25% to reach R22.18 billion. These figures highlight Capitec’s strong performance, reinforcing its position as South Africa’s leading mass-market bank.
CEO Graham Lee, who has been with the bank for over two decades and took leadership in July 2025, is spearheading the bank’s international ambitions. A dedicated team has been tasked with exploring potential markets, although concrete plans for expansion remain in the developmental stage.
Capitec’s existing operations include remittance services to 26 countries, with significant activity in Southern and East Africa. This cross-border experience provides valuable insights for the bank as it considers further international ventures.
Amid its expansion plans, Capitec’s domestic operations continue to thrive. The bank achieved a 31% return on equity, with loan disbursements growing 34% to R98.3 billion. Digital adoption among clients is nearing 90%, and advanced AI systems prevented R673 million in potential fraud losses.
The global economic climate presents challenges, including geopolitical tensions affecting oil supply and currency fluctuations impacting inflation. Despite these hurdles, Capitec is not deterred from pursuing growth opportunities abroad.
Capitec’s foray into international markets is not entirely new. It acquired full ownership of AvaFin, a European credit business, in 2024, gaining valuable international market experience. Ethiopia is cited as a potential market of interest, with the rest of Africa offering a natural starting point for expansion due to proximity and existing economic connections.
The bank’s simple, low-cost, and digitally accessible model has been successful in South Africa, but its adaptability in international markets will be crucial for Capitec’s future success on the global stage.
