Capitec Bank Holdings Limited · JSE:CPI
Capitec Bank — FY2025 Earnings Presentation
47 slides from Capitec Bank's earnings presentation, February 2025
Slide 1: Annual results
Annual results February 2025 Please send any questions to InvestorRelations@capitecbank.co.za Questions will be answered at the end of the presentation.
Slide 2: A story of innovation and resilience
A story of innovation and resilience Turning challenges into opportunities Challenges Our response Covid-19 and lockdown Client-obsessed Global economy Prudent credit management Geopolitical conflict Diversified financial services Inflation, high interest rates Innovation and scale Growth opportunit
Slide 3: Our purpose-led business model drives innovation
Our purpose-led business model drives innovation Our To make a meaningful difference in people’s lives, empowering them to grow why Our Simplicity | Affordability | Accessibility | Personal experience fundamentals Our Personal banking | Business banking | Insurance | VAS | Connect solutions Cloud te
Slide 4: Our recipe for success
Our recipe for success CEO culture, clear objectives and disciplined execution Client-obsessed • Trust of our clients is our top priority • Client-led product development and experience design • In-depth knowledge and measurement (MOS, Product health, CSAT) Energise our people • Deliberate about our
Slide 5: Strong client base for sustained growth
Strong client base for sustained growth Year-on-year growth of fully banked clients exceeds total client growth 24M total – up 7.9% 13M app – up 14.8% High potential segments • Strong growth among high earners, 11M VAS – up 11.1% (+R50 000pm up 26.5%) • 11.1 million youth clients 8.8M fully banked –
Slide 6: Capitec Group key performance indicators
Capitec Group Key performance indicators Headline earnings +30% to 13.7 billion (2024: 10.6 billion) Net interest income Non-interest income to Return on ordinary after credit impairments income from operations Credit loss ratio +54% 7.5% shareholder’s equity 29% after credit impairments to 11.9 bil
Slide 7: Consolidated income statement
Capitec Group Consolidated income statement Year ended Feb 25 YoY Change Feb 25 YoY Change Feb 24 R’ million (excl. AvaFin) (excl. AvaFin) (incl. AvaFin) (incl. AvaFin) Net interest income 16 464 18 171 10% 20 185 23% Credit impairment charge (8 725) (7 428) (15)% (8 258) (5)% Net interest income af
Slide 8: Capitec Group headline earning contribution
Capitec Group headline earning contribution Personal banking channels and clients serve as the foundation for diversification Insurance 25% Strategic initiatives 23% Headline Business banking 5% earnings R13.7 billion AvaFin 2% Personal banking 45% 861 branches 8 797 cash devices 8
Slide 9: Personal banking
Personal banking Unlocking value for our 24 million clients
Slide 10: The economy of 24 million clients
The economy of 24 million clients Trillions of data points provide a deep understanding of clients’ behaviour R12 000 +9% R10 000 R8 000 R6 000 +3% +7% R4 000 +0% +10% +1% +11% R2 000 +18% +18% R0 Groceries Fuel Home Clothing and Restaurants Cellphone Alcohol Electricity Pharmacy Maintenance Shoes a
Slide 11: Personal banking income distribution
Personal banking income distribution Highest growth in value-added services and Capitec Connect +17% (R1.8 billion) +35% (R2.7 billion) 12.8 11.0 10.4 9.2 8.2 7.7 +61% +19% (R1.7 billion) (R0.6 billion) 4.4 3.8 3.2 2.7 2.7 1.5 Net lending and investment Net transaction income Value-added services an
Slide 12: Credit
Credit Optimising for growth
Slide 13: Data-driven credit sales growth
Data-driven credit sales growth 6.0 Loan sales and disbursements (including facility drawdowns) 2,680,000 5.4 5.3 5.5 5.1 2,180,000 Second half sales up 23% 5.0 • Data (AWS) improves 4.8 personalised credit offers, 4.6 4.5 4.6 1,680,000 applications up 33% 4.5 4.5 • Annuity disbursements 4.5 4.2 4.2
Slide 14: Robust credit card growth
Robust credit card growth New limit sales up 48% year-on-year Building future annuity income Credit card delivers annuity income +25% 21.6 +48% 5.1 17.3 13.5 3.5 2.3 Feb 23 Feb 24 Feb 25 Feb 23 Feb 24 Feb 25 Credit card limit sales (R’ billion) Credit card disbursements (R’ billion) 14
Slide 15: Diversified credit income streams
Diversified credit income streams Growing a healthy book +312% +76% +26% R1 793 million 866 10 235 Education 80 Home improvement 647 Vehicles 8 130 492 7 613 R435 million 1 066 175 171 235 84 Feb 23 Feb 24 Feb 25 Feb 23 Feb 24 Feb 25 Feb 23 Feb 24 Feb 25 New sales (R’ million) Sales and disbursement
Slide 16: Improved credit loss ratio
Improved credit loss ratio Returns to the through-the-cycle target of 8.5% Agile book management 11.0% • 30% year-on-year decrease in existing book charges due to improved 9.2% 8.5% performance 8.3% 8.1% 7.6% Growing new book • Upfront provisions increased by R800M year- on-year due to higher sales
Slide 17: New credit solutions drive growth
New credit solutions drive growth By listening to our clients, we are creating innovative products they need NEW Capitec-funded secured home loans launching mid-2025 NEW accessible credit card granting model with limits from R600 repayable within 3 months to build client credit profiles. Since launc
Slide 18: Transaction income
Transaction income Driving growth
Slide 19: Net transaction income up 17%
Net transaction income up 17% Card and electronic payments drive growth Cash volumes Card volumes Payment volumes* (million) (million) (million) +24% +18% 212 276 134 199 +3% 143 562 580 595 2 154 2 135 1 828 1 760 1 558 1 522 Feb 23 Feb 24 Feb 25 Feb 23 Feb 24 Feb 25 Feb 23 Feb 24 Feb 25 The number
Slide 20: Card and electronic payments
Card and electronic payments Change in behaviour from cash to digital Transacting card clients Card payments E-commerce • Total up 23% to 16.9 million +18% +47% to 488 million (2024: 13.8 million) to 2.2 billion transactions transactions incl • Card not present clients up Value spent: Value spent: C
Slide 21: Simple and transparent pricing
Simple and transparent pricing Building trust with our clients Simplified transaction fees from more than 30 to 5 price points 21
Slide 22: Strategic initiatives
Strategic initiatives Delivering value within our ecosystem
Slide 23: Digital products drive growth
Digital products drive growth Value-added services net income grew 56% to R4.2 billion Market share VAS volumes (million) +14% • Prepaid data & airtime: 41% 931 • Prepaid electricity: 27% 814 • Lotto: 17% • Digital vehicle licence disc renewal: 20% • Bill payments: 33% New product highlights +118% •
Slide 24: Capitec Connect
Capitec Connect Net income contribution increased 451% to R193 million Multiple new products 6-month Active Minutes used Data used • New data and voice bundles Base (‘000) (million) (petabytes) • WhatsApp, streaming and large data bundles +74% +263% +189% • Cash vouchers 1,643 307 • Connect advances
Slide 25: Insurance
Insurance Foundations built for future growth
Slide 26: Capitec Insurance
Capitec Insurance R3.5 billion headline earning contribution Strategic update +1% +44% • Sanlam transfer – end of 1 872 1 882 1 905 profit-sharing agreement • Healthy credit book mutes 1 666 credit life insurance growth 1 296 1 018 Feb 23 Feb 24 Feb 25 Feb 23 Feb 24 Feb 25 Funeral and life cover (R’
Slide 27: Funeral and life cover
Funeral and life cover 25% increase in policies and 15 million lives assured Policies Strategic objectives 3 340 (‘000) • Optimise claims experience 96 • Enhance systems to best serve client needs 576 • Review and reprice products, sharing savings with clients • Novel client engagement, adding value
Slide 28: Business banking
Business banking Empowering South African businesses to grow Small | Medium | Emerging
Slide 29: Our strategies for growth
Our strategies for growth Foundations built +22% +15% 23. 3 218 19. 1 Business banking foundations built on 189 scalable channels with a service model of Relationship Suite, bankers and branches. 15. 5 Transaction fee strategy reduced fees and aligned with Personal banking achieved 96% 137 increase
Slide 30: Enterprise payments services
Enterprise payments services Building a single solution to receive payments Payments strategy +58% • Moved e-commerce (Capitec Pay), 212 +15% Payment Services and Merchant Services into one enterprise payments solution 180 156 Capitec Pay (launched in 2024) 134 120 • Over 7.5 million unique personal
Slide 31: New merchant solutions
New merchant solutions Quality devices with low, transparent commission rates New commission rates from May 2025 – lowest in SA (when settled into a Capitec Business account) Turnover bracket Debit card rate* Credit card rate* Under 50k 1.85% 1.85% 50k – 499k 0.85% 1.85% 500k – 999k 0.70% 1.70% Over
Slide 32: Business banking income statement
Business banking income statement Normalised headline earnings up 29% R’ million Excl. Capitec Pay Capitec Pay (after tax) Incl. Capitec Pay 2024 Headline earnings 486 155 641 2025 Headline earnings before 432 295 727 normalisation adjustments Add back: Impact of reducing 66 - 66 transaction fees Ad
Slide 33: Business banking launch
Business banking launch The business bank for everyone Unique positioning The business bank for everyone merges technology with personal service, treating every business the same, from the smallest SME to large companies. Unique product and pricing Offering business banking, enterprise payment solut
Slide 34: AvaFin
AvaFin Establishing our global footprint
Slide 35: Operational overview
Operational overview AvaFin contributed R196 million to group net profit for 2025 Latvia 2% Czechia 26% Poland 30% Spain 18% Mexico 24% Contribution of net interest after credit impairments Key KPIs Strategic focus • Over 220 000 active clients • Capitec funding approved • €407 million loans disburs
Slide 36: Group savings
Group savings New competitive savings options
Slide 37: Deposit balances
Deposit balances Group deposit balances grew 13% to R173 billion Deposit balances (R’ billion) +9% New notice deposits 96.3 88.7 • Launched 7- and 32-day notice 83.1 deposit accounts in July 2024 – balance R7.3 billion (included in +18% fixed deposits) 54.7 • Over 1.2 million notice deposit 46.2 43.
Slide 38: Our new savings structure
Our new savings structure 10 free savings plans enable purposeful savings behaviour • Access anytime accounts offer the same rate as before • Open up to 10 different savings accounts for free on the app • Personalise and fix accounts to earn higher interest • R9.2 billion interest paid out to client
Slide 39: Group operating expenses
Group operating expenses Digitally enabled human-led growth
Slide 40: Total expenses increased by 23% to R17.2 billion
Total expenses increased by 23% to R17.2 billion* Short-term impact on profitability gears the group for long-term growth +14% 6 169 +7% Operating expenses 5 431 excluding salary incentives 5 249 increase by 14% 4 891 +28% • Share appreciation rights expense driven by share price +161% growth of 52%
Slide 41: Our social impact
Our social impact Making a meaningful difference
Slide 42: Uplifting our communities
Uplifting our communities +21 000 Capitec Foundation Learners, school leaders and teachers benefited from improved pure maths education +4 000 Corporate social investment Volunteers partnered with non-profits to deliver 345 initiatives and reach more than 27 000 learners 1.6M Financial education Les
Slide 43: Growing our people
Growing our people 48 Internal Mobility Initiative Participants hired and trained in technology and data from branches and call centres 63% Internal appointments 2 724 internal hires compared to 1 588 external hires +1 100 Youth employment New youth participants and individuals with disabilities enr
Slide 44: Our future
Our future Unlocking potential and helping South Africa to grow
Slide 45: Innovations
Innovations Using data and technology to build trust Fraud and security • Advanced ML models prevent fraud syndicates and money laundering • Step-up authentication through facial biometrics protects high-risk transactions • In-app call verification prevents phishing and scams Service and engagement
Slide 46: Our future
Our future Strategic focus for the next 5 years Become Grow Build a Insights-driven Long-term Focus on Develop an a leading Business vision of a single-service through CEO culture ecosystem payment banking and global brand platform data and AI provider Insurance 46
Slide 47: Thank you
Thank you Please send any questions to InvestorRelations@capitecbank.co.za