Discovery Bank Reaches 1 Million Customers Early, Achieves Monthly Break-Even

Discovery Bank has exceeded its growth targets, reaching 1.09 million clients—two years ahead of its original 2026 goal. The digital bank also achieved monthly break-even in December 2024, marking a major milestone in its journey toward profitability.

These successes were detailed in the Discovery Group’s interim results for HY25, which showed a 42% revenue increase to R1.1 billion and a sharp reduction in losses compared to the previous year.

Key Financial Highlights

• Revenue: R1.1 billion (+42%)
• Non-Interest Revenue: R611 million (+49%)
• Client Base: 1.09 million (+32%)
• Total Accounts: 2.6 million (more than double)
• Deposits Growth: +27%
• Advances Growth: +37% (boosted by home loans reaching R802 million)
• Operating Profit (Before Acquisition Costs): R69 million (vs. R154 million loss in HY24)
• Overall Loss: R145 million (down from R339 million)
• Break-Even Achieved: December 2024 (ahead of plan)

Discovery Group’s Expansion Strategy

Discovery Bank’s performance is part of a larger growth and scalability strategy by the Discovery Group, which aims to expand its financial and insurance offerings through innovation and digital transformation.

The Vitality program continues to be a major growth driver, with the company planning to enhance it further through Vitality AI, a data-driven initiative aimed at improving health outcomes and personalizing user experiences.

Discovery’s Overall Financial Performance

Despite a challenging economic climate, Discovery Group’s financials remain strong:

• Group Insurance Revenue: R27.8 billion
• Total Income: R18.2 billion
• Headline Earnings: R4.3 billion (+34%)
• Discovery Health Profit from Operations: R2 billion (+8%)

Navigating the NHI Challenge

Discovery Health remains engaged in ongoing discussions around South Africa’s National Health Insurance (NHI) policy, which could significantly impact private healthcare in the country. The company is working to mitigate risks and adapt to potential regulatory changes.

Outlook & Dividend Announcement

Looking ahead, Discovery expects profit growth in 2025 to exceed its 15%-20% target, particularly due to a recovery in the UK market in the second half of the year.

The company also declared an interim dividend of 87 cents per share, aligning with its commitment to delivering value to shareholders.

With a scalability-driven approach and strong financial momentum, Discovery Bank and its parent group are well-positioned for continued growth in the fintech and insurance sectors.

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