The Capricorn Group, through its operations in Namibia and Botswana, has recorded a profit after tax of N$1.99 billion for the year ended 30 June.
There are few millions in difference when compared to competitor First Rand, which also recorded a profit after tax of N$1.9 billion.
Capricorn had a loan book growth of 3.7% which pushed net interest income before impairment charges by 10.1% to N$3.4 billion when compared to N$3.1 billion in 2024.
“Interest income growth was driven by loan book growth of 3.7% and effective cost-of-funding management, which compensated for the impact of lower interest rates,” reads a statement issued by the group.
Gross loans and advances increased by 3.6% to N$52.5 billion.
“This was driven by term loans, mortgages and instalment finance,” notes the report.
Non-performing loans at 4.0% was a result of prudent credit risk management, the group says.
Meanwhile, impairment charges decreased to N$315 million from N$328 million, and the loan loss rate improved to 0.61% from 0.67%.
Non-interest income increased by 13.1%.
This is mainly from higher transaction-based fee volumes, especially on digital channels, and strong growth in asset management fees at Capricorn Asset Management.
Meanwhile, operating expenses increased by 10.8%. According to the group, this was due to higher variable banking costs linked to greater transaction and trading volumes, as well as increased employee and technology costs.
“The group’s cost-to-income ratio improved to 49.5% remaining well below the group’s threshold of 52%,” reads the statement.
Capricorn financial director Johan Maass says the results are a joint effort from the group’s portfolio of businesses in Namibia and Botswana.
This includes the banking subsidiaries, Bank Windhoek and Bank Gaborone, as well as Capricorn Asset Management, Entrepo, Peo Finance and associates Paratus, Sanlam Allianz Namibia and Santam Namibia.
Capricorn chief executive David Nuyoma says the group is foreseeing more growth particularly in Namibia.
“The group is in a strong position and has sufficient resources to leverage from the opportunities in Namibia and Botswana.
There are promising growth signs, particularly in Namibia, with significant energy discoveries in the renewable energy sector,” says Nuyoma.
