Capricorn Group’s profit after tax has jumped by 28.4% to N$1.06 billion, compared to N$827.6 million in the same period last year, Group CEO David Nuyoma has said.
This translates to a 29.1% rise in earnings per share to 196.80 cents. The annualised return on equity also improved from 16.8% to 19.1%, he added.
He said Capricorn Group delivered strong financial results, with profit after tax for the six months ended 31 December 2024 increasing by 28.4% to N$1.06 billion, compared to N$827.6 million in the same period last year.
“The Group’s gratifying performance is due to excellent results and solid all-round performances by our subsidiaries, Bank Windhoek, Bank Gaborone, Capricorn Asset Management (CAM), Entrepo, and Peo Finance, as well as our associates,” said Nuyoma.
The Group declared an interim dividend of 61 cents per ordinary share, a 27.1% increase from the interim dividend per share of 48 cents declared in the comparative period. The Group considered its capital and liquidity position when declaring an interim dividend that balances prudency and future growth capacity with a fair dividend yield for investors.
Capricorn Group experienced good momentum in growth despite a difficult, albeit improving, operating environment. Operating profit for the half year increased by 27.0% compared to the same period the year before, driven by improved net interest margins, strong growth in non-interest income, and lower impairment charges.
“Our outlook for Namibia’s economy is promising, with an expected growth of 4% in 2025, driven by a resurgence in primary industries and continued positive performance in secondary sectors like manufacturing, electricity, and water. Namibia is well-positioned with a favourable economic trajectory, with lower interest rates, sectoral growth drivers, and currency stability. Similarly, Botswana’s GDP is anticipated to grow between 3% and 4% in 2025, recovering from the 2024 contraction due to the global diamond market slump. These regional economic developments should help Capricorn Group achieve sustained growth, benefiting all our stakeholders,” concluded Nuyoma.
Capricorn Group’s positive financial performance over the past six months enabled value creation for all stakeholders, contributing to the socio-economic development of Namibia and Botswana and positively impacting many lives, including those of employees, suppliers, shareholders, communities, and the government. The Group created a value of N$2.9 billion during the six months ended 31 December 2024, which was shared by its main stakeholders as follows: employees – N$690 million, government and regulators – N$656 million, ordinary shareholders – N$321 million, suppliers – N$562 million, communities – N$21.2 million, and value retained for future expansion – N$645 million.

Group Financial Performance Highlights

• Net interest income increased by 12.7% year-on-year, attributable to a 5.7% increase in gross loans and advances and effective cost of funding management. Despite a cut of 75 basis points in the Namibian repo rate over the period, Bank Windhoek’s net interest margin improved to 5.28% from 5.11%, while Bank Gaborone’s margin increased to 4.39% from 4.07% year-on-year.

• Asset quality remains a top priority for the group. Impairment charges decreased by 25.7% year-on-year due to better credit risk indicators, following a 75 basis-point reduction in the Namibian repo rate and a proactive approach to credit risk management. Non-performing loans decreased by 0.6% to N$2.39 billion, resulting in a lower NPL ratio of 4.6% (June 2024: 4.7%). The Group continues to maintain prudent provisions for expected credit losses.

• Non-interest income increased by N$179 million (16.1%) on the back of increased transaction and trading volumes. Transaction-based fee income increased by 13.6%, while net trading income increased by 16.3%. Assets under management increased to N$52.2 billion (June 2024: N$46.6 billion), increasing asset management fees from 19.2% to N$122 million for the period under review.

• Operating expenses registered a 12.1% (N$161 million) year-on-year increase, including an increase of N$27 million (16.4%) in variable operational banking expenses, directly linked to increased transaction and trading volumes. Excluding these operational banking expenses, overall expense growth of 11.5% (N$133 million) is reported. This can largely be attributed to staff costs, which increased by N$114.2 million (8.6%), and IT expenses, which increased by…. Increased staff costs were primarily driven by annual salary adjustments and the filling of key vacancies, particularly with respect to IT resources, while IT expenses increased above inflation due to the weaker Namibian Dollar and significant increases in license fees.

• Capricorn Group retained its healthy liquidity position during the period ended 31 December 2024, with liquid assets increasing by 11.5% (N$1.8 billion) year-on-year. Liquid assets exceeded minimum regulatory liquid asset requirements in Namibia and Botswana by 163% and 92%, respectively.

• Gross loans and advances increased by N$1.18 billion since 30 June 2024, mainly driven by growth in term loans of N$583 million and instalment finance of N$403 million. Overdrafts and mortgage loans increased by N$99 million and N$100 million, respectively.

• The Group’s capital position remains robust, with a total risk-based capital adequacy ratio of 18.1% as at 31 December 2024 (June 2024: 17.9%).