Almost half of Capricorn Group’s operating income now comes from activities outside traditional lending, showing how the financial services group is changing the way it makes money.
Non-interest income increased by 8.3% to N$2.62 billion in the year ended June 2026, accounting for 47.7% of the group’s operating income.
Put simply, for every N$100 Capricorn made from its operating activities, almost N$48 came from sources other than the interest earned on loans and investments.
That income includes transaction fees, trading activities and asset-management fees.
The development is significant because traditional interest income came under pressure during the year.
Net interest income, the difference between the interest a bank earns and the interest it pays to depositors and other funders, fell with 1.9% to N$3.33 billion.
Gross loans and advances also declined from N$52.5 billion to N$51.5 billion, with Capricorn pointing to weaker loan demand in Botswana and lower loan uptake at Entrepo.
The numbers show why income outside traditional lending has become increasingly important to the group.
Capricorn’s diversified businesses helped offset some of the pressure on its banking operations.
Capricorn Asset Management, for example, increased profit after tax by 33.3%, while assets under management rose 17.5% to N$67 billion.
Entrepo recorded 6% profit growth, despite disruption following the end of the government payroll deduction administration contract with Avril Payment Solutions.
Bank Windhoek also continued to provide the group’s main earnings base, contributing 71% of group profit after tax.
Its net interest income increased while its loan book grew to N$41.3 billion.
The picture was very different in Botswana, where Bank Gaborone’s net interest income fell 40.2%.
Capricorn said Botswana’s mining sector contracted by about 40%, adding to pressure on the bank.
Credit impairment charges across the group also increased from N$315 million to N$457 million, mainly because of weaker conditions in Botswana.
Despite these pressures, Capricorn ended the year with a stronger balance sheet.
Customer deposits increased 6.3% to N$56.22 billion, total assets grew 3.9% to N$75.38 billion, and liquid assets increased 18.9% to N$22.1 billion.
The group’s capital adequacy ratio improved from 18.1% to 19.4%, well above the regulatory minimum of 12.5%.
Group financial director Johan Maass says the lower profit should be viewed against the unusually strong performance recorded in the previous year.
“Headline results reflect lower profits compared to 2025. However, when assessed on a standalone basis without direct comparison to the prior year’s exceptional performance, the underlying numbers are solid and respectable.”
Group profit after tax nevertheless fell 6.4% to N$1.87 billion, while return on equity declined from 18.2% to 15.6%.
Maass says profit after tax had still grown at a compound annual rate of 13.7% over the past five years.
The group also channelled N$5.8 billion in value to stakeholders during the year, including N$1.3 billion in taxes, N$1.4 billion to employees, N$1.3 billion to suppliers and N$857 million to shareholders.
For shareholders, the ordinary dividend remained unchanged at 135 cents per share.
The group has also identified Namibia’s emerging oil and gas industry, renewable energy and other developing sectors as potential areas of future growth.
Chief executive David Nuyoma says the group remains focused on adapting to changing conditions across its markets.
“While the operating environment continues to present challenges across our markets, our people have demonstrated adaptability and an unwavering commitment to serving customers.”
