South African billionaire Michiel Le Roux’s Capitec Bank reports $369.4-million half-year profit

Feyisayo Ajayi -
Key Points
  • Capitec Bank's H1 2024 profit climbs 36.82% to $369.44 million, showcasing robust financial performance amid the challenging global economic environment.
  • Net interest income surged to 555.80 million, driven by a 14.38-percent increase in interest income from lending and a 24.61-percent rise in income from investments.
  • Total assets increased by 11.09 percent from R200.5 billion ($11.53 billion) on Aug. 31, 2023, to R222.73 trillion ($12.80 billion) by Aug. 31, 2024.

Capitec Bank, one of South Africa’s leading retail banks, founded by billionaire Michiel Le Roux, reported a 36.8-percent profit jump for the first half of its 2025 fiscal year, reaching R6.43 billion ($369.44 million).

This rise from R4.69 billion ($270.22 million) in the same period last year highlights Capitec Bank’s resilience in a tough global economy.

Capitec's interest income jumps 20 percent

The surge was driven by strong net interest and non-interest income. Net interest income increased 20.4 percent to R9.65 billion ($555.8 million), bolstered by a 14.4-percent rise in interest income from lending. Investment income also surged 24.6 percent, hitting R4.43 billion ($254.48 million).

Capitec's non-interest income rose 22 percent to R11.27 billion ($647.6 million), driven by a 29-percent jump in net transaction and commission income to R8.92 billion ($512.7 million). Value-added services and Capitec Connect income surged 79 percent, reflecting the bank's diversification efforts.

Credit impairments dropped 15 percent to R4.03 billion ($233 million) from R4.76 billion ($275 million) in H1 2024, boosting net interest income after impairments by 72 percent to R5.62 billion ($325 million). The acquisition of AvaFin Holding, its new online lending arm, also strengthened Capitec’s international presence.

Balance sheet strength and dividend increase

Founded over two decades ago by Michiel Le Roux, alongside Jannie Mouton and Riaan Stassen, Capitec has grown into one of South Africa’s largest banks by customer base.

Its business model, centered on banking and loan products, has earned it a reputation as a leading retail banking brand globally. Capitec’s product offerings include term loans, credit facilities, and credit cards, making it a key player in the country’s financial landscape.

Capitec’s balance sheet continued to show strength, with total assets rising by 11.09 percent to R222.73 billion ($12.80 billion) as of Aug. 31, 2024, up from R200.5 billion ($11.53 billion) a year earlier. The bank’s total equity grew from R39.35 billion ($2.26 billion) to R45.96 billion ($2.64 billion), further bolstering its financial position.

In light of its solid performance, Capitec’s board of directors recommended a gross dividend of R20.85 ($1.206) per share, representing a 36-percent increase from the prior year. This translates to a dividend payout of R2.42 billion ($139.49 million) for the six months ending Aug. 31, 2024.