Capitec Increases Tech Spending with 19% Rise in Capital Expenditure

Capitec Bank Holdings Ltd  has stepped up investment in technology, reporting a 19% rise in capital expenditure to R1.37 billion for the year ended 28 February 2025, according to its Integrated Annual Report 2025. The increase underscores the bank’s push to strengthen infrastructure and scale operations through digital innovation.

Operating expenses climbed sharply as well, up 30% year-on-year to R18.1 billion, a figure that highlights the growing share of technology and data costs in the bank’s overall operating model. Capitec’s report says sustained investment in technology and analytics has been central to its ability to expand efficiently.

Key initiatives cited by the bank include replatforming its banking app, migrating all data to the cloud, and deploying data analytics to bolster risk management and operational efficiency. These projects are presented as foundational to Capitec’s digital strategy and future growth.

Comparative data suggest Capitec’s IT-related spending is tracking at least in step with peers. TechCentral reported that Absa Group’s IT spend in the first half of 2025 rose to R8.2 billion, a 5% increase year-on-year; while Capitec does not publish six-month breakdowns, its 19% annual capex growth signals a strong upward trajectory.

The bank’s increased emphasis on technology mirrors a broader shift across South Africa’s banking sector, where institutions are prioritising digital transformation, artificial intelligence and cybersecurity. The Financial Sector Conduct Authority (FSCA) has flagged these areas as critical to the industry’s resilience and competitiveness.

Capitec’s results position the bank squarely within this digital pivot, underscoring the role of targeted tech investment in driving long-term growth, operational resilience and deeper customer engagement.