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More than two decades after founding Capitec Bank, South African banking entrepreneur Michiel Le Roux is seeing his disruptive retail-banking vision reach a defining milestone: the bank’s annual profit is projected to climb as high as $1.07 billion for the 2026 financial year, placing it within touching distance of long-established rival Nedbank.
The anticipated surge highlights how Le Roux’s once-contrarian strategy, building a simplified, low-fee bank for everyday consumers, has matured into one of Africa’s most formidable banking success stories.
The projected increase follows a strong prior year in which Capitec recorded headline earnings of $853 million. The latest guidance to investors suggests profit could climb between 20 percent and 25 percent, potentially marking the highest earnings in the company’s history since its listing on the Johannesburg Stock Exchange.
Such growth would further cement Capitec’s position as one of Africa’s most successful banking stories and validate the long-term strategy that Le Roux championed from the outset, centered on accessibility, transparent pricing, and technology-driven efficiency.
Capitec’s expansion has been fueled largely by rapid growth in its client base and transaction volumes. The bank now serves approximately 25 million customers, reflecting its dominance in the mass retail banking segment. Rising lending activity across personal and business banking divisions has also played a central role.
The introduction of new credit products, including purpose-specific loans and lending solutions tailored to clients with multiple income streams, has boosted loan disbursements and income. Increased adoption of credit cards and higher participation in insurance offerings such as funeral and life cover have further strengthened revenue streams, while improvements in South Africa’s macroeconomic environment have contributed to better loan-book quality and healthier credit-loss coverage.
Capitec’s growth is unfolding in business banking
A major new chapter in Capitec’s growth story is unfolding in business banking, a sector that Le Roux long viewed as a strategic expansion frontier. The bank has rapidly scaled this division, reaching about 182,000 business clients by August 2025, representing explosive growth compared with roughly 51,000 clients two years earlier.
This momentum stems in part from Capitec’s 2019 acquisition of Mercantile Bank for $218 million, a deal that signaled its intention to compete more aggressively in commercial banking and challenge established players.
The expansion places Capitec in direct competition with larger rivals already entrenched in the small and medium enterprise space. Institutions such as FNB have made significant advances in lending to small and informal businesses, a segment generating billions in deposits and revenue.
Capitec, however, sees particular promise in the informal sector, where income growth is currently outpacing that of workers in the formal economy. By positioning itself as a financial partner for these underserved entrepreneurs, the bank aims to unlock a powerful new growth engine.
Capitec’s rise has been equally striking in market valuation terms. The lender recently surpassed the $31 billion valuation mark, becoming the fastest South African company to reach that level. The milestone not only reflects investor confidence but also highlights the scale of transformation achieved since Le Roux co-founded the bank in 2001 to challenge traditional institutions with a simpler, more inclusive model.
For Le Roux, Capitec’s looming profit milestone is more than a financial achievement; it represents the culmination of a philosophy that questioned industry norms and focused relentlessly on customer needs. As the bank edges closer to matching the profits of long-established rivals, it stands as a testament to how a bold founding vision can reshape an entire sector.
