Capricorn Group makes N$1.47 billion profit
Declares final dividend of 61 cents per ordinary share
Capricorn Group Limited has diversified operations and business interests in Namibia and Botswana.
Locally listed Capricorn Group’s profit after tax increased by 28.7% to N$1.47 billion for the financial year ended 30 June 2023. The increase was on the back of improved net interest margins, reduced credit impairment losses, strong growth in non-interest income and efficient operations, the Group said.
Commenting on the results, Group CEO Thinus Prinsloo emphasised that the Group remains focused on working towards a sustainable future for the Group and its stakeholders. “As responsible corporate leaders, we must challenge our relevance to stakeholders and continuously re-evaluate how we make an impact. I am pleased that our commitment to improving lives through leadership in financial services by being connectors of positive change has impacted many lives positively this past financial year, resulting in value creation of note for all our stakeholders.”
Meanwhile, Capricorn Group Chief Financial Officer (CFO) Johan Maass said, “The increased injection into the economies of the countries in which we operate can largely be attributed to the satisfactory growth of the banking subsidiaries as the banking sector continued its recovery post-COVID-19, an improvement in net-interest income largely due to the endowment effect of higher interest rates, a growing loan book and prudent cost of funding management. We have also experienced lower credit impairment charges on the back of an improving operating environment and prudent and proactive credit risk management.”
He also indicated that further economic recovery would occur. “We expect further economic recovery and improved operating conditions in our region in the medium to long term. Namibia and Botswana have exciting prospects, some linked to natural resources and others to developing industries, including agriculture, logistics, manufacturing, and tourism.”
Figures
The Group’s net interest income before impairments increased by 16.3% to N$2.72 billion compared to N$2.38 billion recorded in the previous financial period.
The increase was mainly attributed by the net-interest income of Bank Windhoek increasing by 17.8% following a series of interest rate increases totaling 300 basis points over the financial year. As a result of effective cost of funding management, Bank Windhoek’s cost of funding only increased by 208 basis points over the financial year.
In addition, non-interest income increased by 13.1% to N$1.89 billion, mainly driven by transaction-based fee income increasing by N$197.8 million (18.2%) mainly as a result of higher transactional volumes, particularly through electronic channels.
The Group’s operating expenses increased by 14.7%, which is higher than inflation. These increases relate to a normalisation of operational activity post-COVID-19, including increased spending on marketing, travel and training. Staff cost is the largest component of our operating expenses. During the pandemic, the Group did not fill vacancies, barring critical appointments.
The Group declared a final dividend of 61 cents per ordinary share, which will be paid to shareholders on 20 October 2023.
Commenting on the results, Group CEO Thinus Prinsloo emphasised that the Group remains focused on working towards a sustainable future for the Group and its stakeholders. “As responsible corporate leaders, we must challenge our relevance to stakeholders and continuously re-evaluate how we make an impact. I am pleased that our commitment to improving lives through leadership in financial services by being connectors of positive change has impacted many lives positively this past financial year, resulting in value creation of note for all our stakeholders.”
Meanwhile, Capricorn Group Chief Financial Officer (CFO) Johan Maass said, “The increased injection into the economies of the countries in which we operate can largely be attributed to the satisfactory growth of the banking subsidiaries as the banking sector continued its recovery post-COVID-19, an improvement in net-interest income largely due to the endowment effect of higher interest rates, a growing loan book and prudent cost of funding management. We have also experienced lower credit impairment charges on the back of an improving operating environment and prudent and proactive credit risk management.”
He also indicated that further economic recovery would occur. “We expect further economic recovery and improved operating conditions in our region in the medium to long term. Namibia and Botswana have exciting prospects, some linked to natural resources and others to developing industries, including agriculture, logistics, manufacturing, and tourism.”
Figures
The Group’s net interest income before impairments increased by 16.3% to N$2.72 billion compared to N$2.38 billion recorded in the previous financial period.
The increase was mainly attributed by the net-interest income of Bank Windhoek increasing by 17.8% following a series of interest rate increases totaling 300 basis points over the financial year. As a result of effective cost of funding management, Bank Windhoek’s cost of funding only increased by 208 basis points over the financial year.
In addition, non-interest income increased by 13.1% to N$1.89 billion, mainly driven by transaction-based fee income increasing by N$197.8 million (18.2%) mainly as a result of higher transactional volumes, particularly through electronic channels.
The Group’s operating expenses increased by 14.7%, which is higher than inflation. These increases relate to a normalisation of operational activity post-COVID-19, including increased spending on marketing, travel and training. Staff cost is the largest component of our operating expenses. During the pandemic, the Group did not fill vacancies, barring critical appointments.
The Group declared a final dividend of 61 cents per ordinary share, which will be paid to shareholders on 20 October 2023.
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