JSE-listed Capitec Bank, South Africa’s largest retail and digital bank by number of clients, has announced plans to launch its first fully funded, secured home loan product in mid-2025.
This strategic move comes as the bank reported robust financial results for the year ended February 2025, with a 30% jump in headline earnings and a 32% increase in operating profit before tax.
“Based on our insights we will be launching a number of new credit products in the coming year. In mid-2025, we will launch a secured home loan product through an SPV with SA Home Loans, funded with R5 billion,” the bank said.
In 2020, Capitec announced its official entry into the secured home financing market, featuring a simplified, fast-tracked application process and competitive linked interest rates starting at 6%, with loans of up to R5 million offered over terms of up to 30 years. The Stellenbosch-based group stated the offering was aimed at making home ownership more accessible.
Capitec also revealed additional credit products set to launch in the coming year. These include a new “repay-as-you-earn” loan tailored for multiple-income earners and small to medium-sized enterprises (SMEs), and a short-term, low-limit credit card designed to help clients build credit scores responsibly.
The bank continues to show strong growth momentum. For the financial year ended February 2025, it added nearly 2 million new clients, bringing its active customer base to 24.1 million.
The board also declared a final gross dividend of 4,425 cents per ordinary share, bringing the total dividend to 6,510 cents.
Key financial highlights include:
- Headline earnings up 30% to R13.7 billion, or 11,911 cents per share
- Operating profit before tax up 32% to R17.74 billion
- Total dividend per share up 34% to 6,510 cents
- Net asset value up 17% to R50.9 billion
- Return on equity rose to 29%, from 26% in the prior year
Net interest income after credit impairments surged by 54% to R11.9 billion, driven by improved lending conditions and a 28% rise in loan disbursements.
Business banking loan disbursements grew by 29%, and credit impairments fell by 6%, reflecting more effective risk management.
Despite a 12% rise in gross loans and advances, the group’s credit loss ratio (CLR) declined from 8.7% to 6.9% (excluding international fintech AvaFin), contributing nearly R1 billion to headline earnings growth. Including AvaFin, the CLR was 7.5%.
Capitec’s non-interest income also performed strongly, growing 22% and contributing R3.1 billion to headline earnings.
The financial services company said it is also expanding its international footprint through AvaFin, a fintech company acquired in 2025. AvaFin operates in Poland, Latvia, Czechia, Spain, and Mexico, providing digital loans to underbanked consumers.
Capitec said it received regulatory approval to start funding AvaFin, which will help the company transition from high-risk, short-term credit products to longer-term, lower-risk offerings such as installment loans and revolving credit. The bank expects this shift to reduce AvaFin’s funding costs and improve overall credit quality.