(Adds more details in paragraphs 2-8 and reason for growth in paragraph 1) By Siyanda Mthethwa JOHANNESBURG, Oct 1 (Reuters) – South African lender Capitec Bank reported a 26% increase in half-year profit on Wednesday driven by a strong performance across its banking, insurance, and fintech segments. Alongside a sharp rise in active customers, the profit increase reinforces its position as the country's largest retail bank by customer base. Headline earnings per share, a key profitability metric in South Africa, rose to 8 billion rand ($464.37 million) for the six months ended August 31, from 6.4 billion rand in the same period last year. The bank grew its client base to 25 million, up from 23 million a year ago. Net interest income after credit impairments rose by 27% to 7.1 billion rand, reflecting increased earnings from loans relative to interest paid on deposits. Net non-interest income rose 19% to 13.4 billion rand. "Our ability to leverage economies of scale, simplify transaction costs, and innovate across our offerings has made a meaningful difference for our clients while delivering strong financial results," said Group CEO Graham Lee, who officially succeeded Capitec founder Gerrie Fourie in June 2025. Loan disbursements grew by 40% during the period, supported by a 32% rise in personal banking loans and a 42% increase in business banking loans. Capitec posted a 36% surge in income from value-added services and a 45% increase in net insurance income, driven by higher sales of funeral and life cover policies. It declared an interim dividend of 26.20 rand per share, a 26% increase from 20.85 rand a year earlier. ($1 = 17.2277 rand) (Reporting by Siyanda Mthethwa;Editing by Sfundo Parakozov, Muralikumar Anantharaman and Christian Schmollinger)
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