Africa’s most valuable bank confirms global expansion as loan disbursements hit $5.3bn
South Africa’s largest bank by market capitalisation, Capitec, is preparing for an eventual international expansion, although executives stress the strategy remains at a very early stage.
Black News 
![A Capitec bank branch on January 25, 2012 in Johannesburg, South Africa. [Photo by Sipho Maluka/Sunday Sun/Gallo Images/Getty Images]](https://ocdn.eu/pulscms/MDA_/f69616ee829a5c406a2bbb102bddd2f2.jpg)
South Africa’s largest bank by market capitalisation, Capitec, is preparing for an eventual international expansion, although executives stress the strategy remains at a very early stage.
- Capitec is exploring international expansion, with a dedicated team scanning global markets for opportunities.
- The bank reported a 23% rise in headline earnings to about $0.91 billion, driven by strong lending growth.
- Despite momentum, credit risks increased, with higher arrears recorded in parts of Europe and Latin America.
- Executives say global expansion remains a long-term goal, with no immediate market entry confirmed.
Group CEO Graham Lee said a dedicated team has been formed to identify opportunities globally following the bank’s FY2026 results.
He said the bank is “scanning the whole world” for potential entry points, adding that expansion will not be restricted to emerging markets but will instead focus on gaps where its low-cost, data-led model can compete effectively.
Lee cautioned against replicating the domestic model abroad, noting that “every market differs”, drawing on his experience working across Zimbabwe, the United Kingdom, Australia and Nigeria.
Capitec, which serves about 26 million active customers, remains South Africa’s most valuable bank, with a market capitalisation of R513 billion (about $27.7 billion at prevailing exchange rates).
While international growth remains part of its long-term roadmap, Lee said the immediate focus is on building the internal capabilities required before committing to new jurisdictions.
The group already has limited offshore exposure through its majority stake in Polish-based digital lender AvaFin, which operates in Poland, Spain, Mexico, Czechia and Latvia. However, AvaFin contributed just 1% to headline earnings in FY2026.
Beyond geography, Capitec is also investing in new media and data services to help its business banking clients better target and engage customers, expanding its ecosystem beyond traditional banking.
Financially, Lee’s first full year as CEO, following Gerrie Fourie's replacement, delivered strong growth. Headline earnings rose 23% to R16.8 billion (about $0.91 billion), while dividends per share increased by 23% to 7,980 cents.
Net interest income climbed 19% to R24.1 billion (about $1.30 billion), supported by strong lending growth in both personal and business banking. Personal loan disbursements rose 27%, while business banking lending increased 48%.
Total loan disbursements jumped 34% to R98.3 billion (about $5.31 billion), driven by data-driven targeting in retail banking and score-based lending in the business segment.
Interest income on investments rose modestly to R9.2 billion (about $0.50 billion), while interest expenses fell 8% despite higher deposits, helped by lower policy rates and adjustments to savings products.
However, credit impairments increased, pushing the group’s credit loss ratio to 8.1%, with deterioration across all segments, including 2.4% in business banking, 8.2% in personal banking and 53.2% at AvaFin.
The group said it tightened lending criteria after higher arrears were observed in Mexico, Spain and Czechia, where newer, longer-term products were introduced to test market behaviour.
