Capitec Surpasses Rivals to Become South Africa’s Most Valuable Bank

Capitec has shaken up the local banking scene by officially becoming South Africa’s largest bank by market capitalisation. The milestone comes after a remarkable 60% increase in its share price over the past year—30% of which happened in April alone—propelled by strong financial results for the year ending 28 February 2025.

With a market cap of R407 billion, Capitec has leapfrogged over financial heavyweights like FirstRand (R401 billion) and Standard Bank (R384 billion). It now stands not only as the biggest retail bank by customer numbers, but also as the most valuable bank on the Johannesburg Stock Exchange.

The announcement came as the company reported a 30% increase in headline earnings to R13.7 billion, and a 34% dividend hike—figures that cement investor confidence in the bank’s growth trajectory. Capitec now serves 24.1 million active clients, representing over half of South Africa’s adult population.

“These results represent more than just numbers,” said outgoing CEO Gerrie Fourie. “They’re a testament to our belief that banking should be simple, affordable, accessible, and personal.”

Capitec’s performance is particularly impressive given the turbulent economic conditions. Over the past five years, the bank has launched business banking, Capitec Connect, insurance under its own license, and various value-added services. Its investment in technology and data analytics allows it to process trillions of data points to create meaningful, client-centric solutions.

“Capitec’s innovation-led culture sets it apart,” said Grant Nader of Benguela Global Fund Managers. “They’ve built something that traditional banks are now trying to replicate.”

While its P/E ratio remains high, investors are still buying into the Capitec growth story, seeing the premium as justified given its consistent delivery and disruptive approach.

The shift in rankings reflects a deeper transformation in South Africa’s banking sector, as tech-savvy, accessible institutions like Capitec reshape what financial services look like for millions.

Market Cap Snapshot – 25 April 2025:

As Capitec prepares for a leadership transition later this year, the bank’s vision for accessible, people-first banking seems more relevant than ever—and its position at the top might be just the beginning of a new chapter in South African banking.

{Source: BusinessTech}

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