Capricorn Group profits reach N$1 billion mark for the first time
Capricorn Group recorded a milestone after its profit after tax stood at N$1 billion for the financial year ended 30 June 2019 from N$934.4 million in June 2018.
The group’s CEO Thinus Prinsloo this week said that Bank Windhoek, Capricorn Asset Management and Entrepo Holdings’ performances exceeded expectations, while Bank Gaborone performed in line with its targets for growth and profitability, adding that Cavmont Bank showed improvement compared to the prior year with a significantly reduced operating loss compared to the previous year.
According to the group’s financial director Jaco Esterhuyse, the earnings attributable to shareholders (excluding exceptional items in the prior year) increased by 15.3% year-on-year.
The group increased net interest income with 17.3%, mainly contributed by Entrepo and good margin improvement resulting from lower cost of funding and effective liquidity management in Bank Windhoek, while non-interest income, excluding the profit on sale of Visa shares of N$77.3 million and N$38.8 million gain-on-bargain purchase of Entrepo, grew by 22.6% to N$1.36 billion.
The growth in non-interest income is mainly due to strong forex trading income across the three banks, strong consistent income from electronic channels in Bank Windhoek, transaction fee income growth in Bank Gaborone as well as income from underwriting activities contributed by Entrepo for the first time. Asset management income increased by 11.3% to N$118.2 million (2018: N$105.8 million).
Furthermore, gross loans and advances increased in line with private sector credit extension by 6.5% to N$39 billion. N$2.2 billion of this increase is accounted for by commercial loans in Bank Windhoek and Bank Gaborone.
“These results indicate that, despite demanding circumstances, including the economies being under severe pressure, Capricorn Group has stood firm against the storms and made a noteworthy impact,” said Prinsloo.
Prinsloo noted however that they anticipate the tough conditions to persist, amplified by economic challenges and the widespread impact of the drought, resulting in consumers, including their customers, remaining under pressure and in need of innovative solutions that will address their unique challenges.
“We will continue to execute on our strategic choices and keep our focus on operational excellence, thus consequently creating value and contributing to positive change for all our shareholders and stakeholders,” said Prinsloo.
Caption: Group CEO, Thinus Prinsloo; Bank Windhoek Managing Director, Baronice Hans; and Group Chief Financial Officer, Jaco Esterhuyse at the function, where they each presented the results.