Capricorn Investment Group announces satisfactory results – subsidiaries deliver on strategies, despite difficult operating environment
Capricorn Investment Group Limited announced satisfactory results this week with group profit after tax of N$557 million for the six months ended 31 December 2019, increasing by 7.9% compared to the prior period.
The Group’s core headline earnings per share, which excludes restructuring costs incurred in Zambia during July 2019, increased by 10.3% year on year.
“This solid performance is mainly as a result of subsidiaries delivering on their strategies, despite difficult operating environments. Bank Windhoek, Bank Gaborone, Entrepo and Capricorn Asset Management delivered above expectations during this period,” Thinus Prinsloo, Group CEO said.
Prinsloo added that following the good results in the 2019 financial year when the Namibian economy experienced material contractions, it is gratifying that the Group reports another period of positive growth for the group amidst continuing difficult economic conditions.
He noted that the group is confident that through its committed and capable Capricorn citizens, continuous focus to improve processes and investment in technology, it will be able to weather the economic storms and continue to perform well.
“Beyond this financial year, we remain positive that the group will continue its resilience,
deliver positive results, create value for all our stakeholders and be a connector of positive change
in the jurisdictions where we operate,” Prinsloo said.
Jaco Esterhuyse, Financial Director said despite a 25 basis point rate cut in both Namibia and Botswana in August 2019, the Group managed to increase net interest income by to N$1.13 billion and non-interest income to N$711.7 million.
“As customers migrate from traditional banking channels to digital channels, transaction income from electronic and digital channels increased by 12.1% year on year. Excluding the restructuring costs incurred in Zambia, operating expenses were contained to a 3.5% year on year increase, which is a reflection of the deliberate drive by the Group to contain costs during the current adverse economic times,” Esterhuyse said.