Discovery Bank has reported its first full-year profit, marking a major milestone for the digital bank and a new phase in its growth.
The bank recorded R370 million in normalised profit from operations for the financial year ended 30 June 2026, representing a 600% increase from the previous year.
The milestone means Discovery Bank no longer requires ongoing investment from its parent company, following an estimated R15 billion investment by Discovery in building the bank.
Discovery Bank Reaches Profitability
Discovery said the results show that the group is entering a new “scaled organic growth” phase, following years of investment in businesses including Discovery Bank and its global Vitality network.
Discovery Bank’s client base increased by 26% to 1.57 million, while the number of accounts reached 3.77 million.
Importantly, 70% of new business came from outside the wider Discovery Group, highlighting the bank’s ability to attract customers beyond Discovery’s existing ecosystem.
Retail deposits also grew by 17% to R27.2 billion, while gross retail advances increased by 40% to R12.9 billion.
A Growing Discovery Ecosystem
Discovery said the bank’s next phase will focus on developing a “super bank” that becomes the main platform through which customers access services across the group.
These include banking, insurance, healthcare and wealth management, creating opportunities for customers to use multiple Discovery products through the banking platform.
Discovery Bank is targeting R3 billion in profit by 2029 as it continues to scale.
The bank’s first annual profit represents a significant turning point for Discovery and could strengthen its position as a growing competitor in South Africa’s highly competitive banking sector.
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