In this report, we will look at the full year 2025 results:

• Headline earnings leaped 30% to reach a record high of R13.7 billion.
• Net interest income increased by 23% to R20.2 billion, up from R16.5 billion.
• Net interest income after credit impairments increased by 54% to R11.9 billion and contributed R2.7 billion to headline earnings growth for the year.
• Gross loans and advances grew by 12% to R116 billion with business banking growing by 22% and the private banking sector by a lower 7%.
• Net non-interest income increased by 22% to R23.9 billion. Net transaction and commission income, including VAS and Capitec Connect, increased by 25% to R18.5 billion, accounting for 78% of net non-income (FY2024: 76%). Digital transactions and card payments accounted for 90% of transaction volumes and grew by 17% and 20%, respectively.
• Credit impairments decreased by 5% to R8.3 billion, despite the inclusion amount of R830 million of credit impairments from AvaFin.
• Operating expenses increased by 30% to R18 billion, of which 7% is attributable to the inclusion of AvaFin, 9% to increased employee incentives from higher earnings growth, 8% due to higher employee headcount, and 6% from employee increases.

Our research supports a sell recommendation.