Capricorn Group profit after tax increases to N$983 million
Capricorn Group released its financial results for the period ended June 2021, showing that the group’s profit after tax increased by 14.8% to N$983 million.
Thinus Prinsloo, group Chief Executive said all its subsidiaries performed above expectations and have managed to grow or maintain market share during the financial year, giving the group a strong foundation to continue growing and expanding its leadership in the various markets.
“I wish to thank each employee in Namibia, Botswana and South Africa and celebrate the way that they have persevered and adapted to new and uncertain conditions whilst maintaining customer service levels and delivering on our strategic choices,” Prinsloo said.
During the past year, the group’s liquid assets remained well above regulatory requirements. As of 30 June 2021, Bank Windhoek’s liquid assets showed a surplus of N$3.1 billion over the Bank of Namibia minimum liquid asset requirements, while Bank Gaborone had a surplus of BWP681.4 million above Bank of Botswana requirements. Bank Windhoek increased funding by 2.8% to N$38.1 billion, while Bank Gaborone increased funding by 11% to BWP5.8 billion.
Net interest income and interest margins were under pressure following unprecedented interest rate cuts of 250 basis points in Namibia and 100 basis points in Botswana between March 2020 and September 2020. Notwithstanding this, the group’s net interest income before impairment charges increased by 3.3% to N$2.26 billion.
This while non-interest income of the Group increased by 3.6% to N$1.48 billion (2020: N$1.42 billion), significantly supported by diversified income streams from asset management and life assurance businesses. Bank Windhoek and Bank Gaborone increased non-interest income by 4.3% and 28.8% respectively, mainly from increased transaction volumes.
“We believe Botswana offers good growth opportunities, with real GDP growth of 8.8% projected for 2021. Economists are still expecting interest rates to remain flat in the short term. We can expect external factors to continue muting customer and business confidence. As a Group, we remain committed to developing our new business pipeline and revenue streams to grow, even under these challenging circumstances”, said group Financial Director, Jaco Esterhuyse.
Since the start of the COVID-19 pandemic in March 2020, the Group has provided payment holidays on loans freeing up to N$343 million in cash flow to its clients.
The Group declared a final dividend of 38 cents per ordinary share. Considering the interim dividend of 22 cents per ordinary share, this represents a total dividend of 60 cents per ordinary share (2020: 50 cents per ordinary share).
During the year, Capricorn also disposed of its loss-making Zambian operations.
Thinus Prinsloo, Capricorn Group Limited CEO.