Martin Endjala
In its interim financial results for the six months ended 31 December 2023, the Capricorn Group said in their report that it created a value of N$2.42 billion for all its stakeholders.
The Group’s Chief Executive Officer, Thinus Prinsloo said the Group’s positive financial performance enabled the bank to create value for all stakeholders, contributing to the socio-economic development of Namibia and Botswana and positively impacting many lives including employees, suppliers, shareholders, communities and government.
The value is spread across its shareholders mainly, its employees at an amount of N$563 million, the government through taxes N$574 million, ordinary shareholders N$314 million, suppliers N$515 million, communities N$19.8 million as well as the value retained for future expansion of N$438 million.
According to Prinsloo, the central banks of both Namibia and Botswana have adopted prudent monetary policy measures to counteract inflationary pressures and to protect local currencies in volatile global market conditions brought about by spreading geopolitical tensions.
The current outlook is that inflation will stay within the target range of both central banks in the short to medium term, with the possibility of interest rates decreasing in the coming 12 months.
The Bank of Namibia’s Economic Outlook for December 2023 predicts a deceleration in economic growth, primarily attributed to weakened global demand and an expected contraction in the agriculture sector.
The projections indicate real Gross Domestic Product growth rates of 3.9 percent, 3.4 percent, and 3.1 percent for the years 2023, 2024, and 2025 respectively.
Despite these challenges, Prinsloo noted that the overarching commitment of Capricorn Group remains focused on sustained growth for the benefit of all stakeholders.
Furthermore, its asset quality remained a key focus area for the Group. Despite the challenging economic environment, the Group’s total Non-Performing Loans (NPLs) were contained to N$2.66 billion (June 2023: N$2.46 billion) as the Group continues to manage credit risk on a pro-active basis.
This increased the NPL ratio from 5.2 percent to 5.4 percent over the six months ending 31 December 2023. The NPL ratio remains below the industry average.
The Group enhanced its already robust capital position with a total risk-based capital adequacy ratio of 17.6 percent as of 31 December 2023 (June 2023: 16.9 percent).
Capricorn Group retained a healthy liquidity position as of 31 December 2023 as the Group’s liquid assets increased by 10.9 percent (N$1.56 billion).
Liquid assets exceeded minimum regulatory requirements in Namibia and Botswana by 135 percent and 114 percent, respectively, on 31 December 2023.
