South Africa’s largest bank by customer base, Capitec, plans to enter the international market following its 2024 acquisition of the international credit provider AvaFin. However, CEO Graham Lee says expanding into the international market will take time.
Capitec is the youngest and the only bank in the country’s Big Five that does not operate retail branches abroad. The other banks – Standard Bank, FirstRand, Absa, and Nedbank – have long-standing, significant footprints in other African countries and, in some cases, global financial hubs.
Capitec Bank was established on 1 March 2001 and was listed on the Johannesburg Stock Exchange (JSE) on 18 February 2002.
International operations
While Capitec provides international payment services and its cards can be used globally, it does not operate retail banks abroad. It intends to change this in the near future.
Lee hinted at the plan to expand internationally in the bank’s financial results for the year ending 28 February 2026.
“Initiatives will be designed to support longer-term opportunities, including international expansion and acquisitions, ensuring that Capitec remains resilient and adaptable as the business evolves over time,” he said.
Capitec international presence
The lender acquired international credit provider AvaFin in 2024. AvaFin operates in Poland, Spain, Mexico, the Czech Republic and Latvia.
However, its contribution to Capitec’s headline earnings for the period was not significant. AvaFin operates as an online consumer lender, providing digital, short-term and instalment loan products.
Lee said that at the moment, Capitec is still looking to find opportunities to launch, adding that the bank will not just target emerging markets and will look for any gaps where the brand can utilise its expertise.
Lee’s international exposure
This was Lee’s first time delivering the lender’s full-year financial results after succeeding former CEO Gerrie Fourie.
Lee might be the right man to lead the lender into the new era, given his international exposure. According to his LinkedIn profile, he has worked in Nigeria, Australia, the United Kingdom and Zimbabwe.
The bank’s financial results showed that international transaction volumes increased from 66.4 million to 85.2 million. This was attributed to the adoption of Capitec’s value proposition of zero fees and no margin on the exchange rate.
Plan with AvaFin
Capitec said AvaFin’s strategy is to evolve into a longer-term lender in the highly competitive European subprime market.
“Longer-term products with maturities of up to four months were introduced in Mexico and Spain during the year to assess the markets in these countries as part of our strategy,” reads the results.
“During the evolutionary period, AvaFin will test new products at competitive rates.”
According to the results, AvaFin contributed R128 million (EUR6.5 million) to headline earnings for the year, a decrease from R196 million (EUR10.5 million) it contributed for 10 months in 2025.
Capitec said: “Investment in AvaFin’s future, including shifting to lower interest, longer tenor loans and experimentation in distribution, resulted in a lower headline earnings contribution despite improved operational metrics.”
