Capitec going from strength to strength

Capitec’s value-added services are set to give the bank a significant boost in its 2025 financial year, with earnings expected to grow by up to 32%.

South Africa’s biggest bank by clients released a trading update on Friday, 31 January, which outlined its earning expectations for the year through February 2025.

The bank said it expects its headline earnings per share and earnings per share to increase by between 28% and 32%.

Capitec also noted that the improvement in its credit impairment charge and credit loss ratios in the second half of the 2024 financial year has continued into the 2025 financial year.

“Net transaction and commission income – including value-added services and Capitec Connect – was a significant driver of growth during the current financial year,” the bank said.

“Active and fully banked client numbers and client acceptance of our new and maturing products continued to grow.”

This update comes after the bank recently announced changes to its banking fee structure in what it calls an “industry-first”.

Capitec said this change marks a significant step forward in making banking more accessible and affordable for all South Africans. 

The new structure simplifies banking fees by introducing reduced prices for key services.

This structure revolves around five key price points: R1, R2, R3, R6, and R10. It simplifies over 30 price points into these tiers: 

• R1: Payments between Capitec accounts, including Capitec Pay. 
• R2: Payments to other banks via EFT or PayShap. 
• R3: Debit orders. 
• R6: Immediate payments for real-time transfers. 
• R10: Cash withdrawals per R1,000 at Capitec or other banks’ ATMs. 

Capitec’s group executive of marketing and communications, Francois Viviers, said the bank believes that making banking fees accessible starts with pricing. 

“By consolidating our fees into clear, simple tiers and reducing costs for essential services like debit orders and immediate payments, we’re making it easier for South Africans to understand and manage their banking fees,” he said.

“Capitec has extended its simplified fee structure to business banking clients, offering the same affordable rates as personal banking accounts.” 

“This change underscores the bank’s commitment to fostering economic inclusion and growth for entrepreneurs and small businesses.” 

Capitec business accounts require a minimum balance of R150 and include a monthly fee of R50, which provides access to a dedicated relationship suite available 24/7 for personalised support.

The bank clarified that its monthly account fee for personal banking clients remains unchanged at R7.50, maintaining Capitec’s position as one of South Africa’s most affordable banks.  

Capitec’s results for the year through February 2025 are expected to be published on or about 23 April 2025.