CHAMWE KAIRAÂ
The Capricorn Group delivered strong financial results with profit after tax for the six-month period 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.
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%.
The performance is due to excellent results and solid all-round performances by its subsidiaries, Bank Windhoek, Bank Gaborone, Capricorn Asset Management (CAM), Entrepo, and Peo Finance, said David Nuyoma, Group CEO.
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, benefitting all our stakeholders,” said Nuyoma.
The group created a value of N$2.9 billion during the six months ended 31 December 2024. 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, an 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.
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 installment 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%).
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.
