Plans for global expansion are being considered by South Africa’s most valuable bank, Capitec, though leadership emphasises that the initiative is still in its early stages.
Group CEO Graham Lee revealed that a specialised team has been set up to explore international opportunities following the release of the bank’s FY2026 results.
He explained that the bank is assessing markets worldwide for potential entry, noting that the strategy will not be limited to emerging economies but will instead target areas where its low-cost, data-driven approach can gain a competitive edge.
Lee also warned against simply duplicating Capitec’s local model in other regions, stressing that each market has unique dynamics, drawing from his experience in Zimbabwe, the United Kingdom, Australia, and Nigeria.
With approximately 26 million active clients, Capitec continues to hold its position as South Africa’s largest bank by market value, estimated at R513 billion (around $27.7 billion).
Although expanding internationally is part of the bank’s long-term vision, Lee indicated that the current priority is strengthening internal capabilities before entering new markets.
The bank already maintains a modest international presence through its majority stake in digital lender AvaFin, which operates in Poland, Spain, Mexico, Czechia, and Latvia, though it contributed only 1% to headline earnings in FY2026.
In addition to geographic expansion, Capitec is investing in media and data solutions aimed at helping business clients better understand and reach their customers, broadening its services beyond traditional banking.
Financial performance during Lee’s first full year as CEO after succeeding Gerrie Fourie showed solid growth, with headline earnings rising 23% to R16.8 billion (about $0.91 billion) and dividends per share increasing by the same margin to 7,980 cents.
Net interest income grew 19% to R24.1 billion (around $1.30 billion), supported by strong lending activity across both personal and business segments. Personal loan disbursements increased by 27%, while business lending surged by 48%.
Overall loan disbursements climbed 34% to R98.3 billion (approximately $5.31 billion), driven by data-led targeting in retail banking and score-based lending in the business segment.
Income from investments rose slightly to R9.2 billion (about $0.50 billion), while interest expenses declined by 8% despite higher deposit levels, aided by lower policy rates and adjustments to savings products.
However, credit impairments also increased, pushing the group’s credit loss ratio to 8.1%, with declines recorded across all segments, including 2.4% in business banking, 8.2% in personal banking, and 53.2% at AvaFin.
The bank noted that it has since tightened lending standards after observing rising arrears in markets such as Mexico, Spain, and Czechia, where newer long-term products had been introduced to assess customer behaviour.