Discovery Bank Emerges as One of South Africa’s Fastest-Growing Digital Banks
This achievement marks the transition from its heavy investment phase into a period of scaled growth.
Discovery Bank has reached a significant milestone, achieving profitability for the first time since its launch. The bank, which forms part of the Discovery Limited group, recorded its first profit in the second half of the 2025 financial year, ahead of the original plan set out by management. This achievement marks the transition from its heavy investment phase into a period of scaled growth.
Discovery Bank’s performance was driven by strong client acquisition and increased activity across its product base. Total clients grew by 30% year-on-year, reflecting continued adoption of the bank’s digital-first model and integration with Discovery’s broader ecosystem. Deposits expanded by 26%, supported by its competitive savings offerings, while loan advances grew by 39%, showing increased demand for its credit solutions. These gains contributed to double-digit revenue growth and laid the foundation for profitability.
Capital strength remains a key feature of the bank. Its common equity tier 1 (CET1) ratio closed the year at 16.31%, comfortably above regulatory requirements and supported by additional buffers for growth. This strong capital base ensures the bank is well-positioned to manage expansion while maintaining prudent risk levels.
The bank’s success is underpinned by Discovery’s Vitality Shared-value model, which incentivises positive financial behaviour by rewarding responsible spending, saving, and borrowing. This model, already established in Discovery’s health and insurance businesses, has been extended effectively into banking, creating better outcomes for both clients and the bank itself. Integration across Discovery’s ecosystem further strengthens the bank’s value proposition, with clients benefiting from linked insurance, investment, and wellness rewards.
Discovery Bank’s progress comes within the context of a strong performance by the broader Discovery Group. For the year ended 30 June 2025, Discovery reported a 29% increase in normalised operating profit to R15.2 billion and a 30% rise in headline earnings. Against this backdrop, Discovery Bank stood out as one of the fastest-growing business units, showcasing the success of Discovery’s long-term investment in building a disruptive, digitally enabled financial institution.
Looking ahead, Discovery Bank is entering a new growth phase. The focus will be on expanding its client base further, increasing penetration in both secured and unsecured lending, and deepening integration with Discovery’s insurance, health, and investment businesses. Continued investment in digital innovation will also remain central to its strategy, enhancing customer experience and operational efficiency.
The achievement of profitability not only signals Discovery Bank’s strengthening position in the South African market but also highlights a broader shift in financial services. Digital-first, ecosystem-driven banks are moving beyond challenger status and proving their ability to operate at scale, sustainably and profitably.
