Capricorn Group records N$580.5 million profit from continued operations
The Capricorn Group this week released their interim financial results for the six months ended 31 December 2021, showing profit from continuing operations of N$580.5 million, which remains slightly below the pre-Covid profit reported for the six months ended 31 December 2019 (N$587.8 million).
However, the increased economic activity, albeit from a low base, had a positive impact on the performance of the Group, with profit from continuing operations increasing by N$111.4 million (23.8%) year-on-year.
“Our interim results reflect a slightly improved operating environment. We were able to preserve and grow value despite the economic and social shock brought about by Covid-19, based on the diversified nature of the Group,” said Thinus Prinsloo, Group CEO.
The Group’s net interest income increased by 4.9% year-on-year mainly attributable to an improvement of 50 basis points in the net interest margins of Bank Windhoek as a result of an effective funding repricing.
Further, the Group saw impairment charges decrease by 21.6% year-on-year to N$182.0 million, mainly attributable to the improved operating environment positively impacting the key credit risk indicators of the banks resulting in lower provisions required than in 2020.
However, the severe impact of the Covid-19 pandemic is still very prevalent, as illustrated by impairment charges for the six months still significantly exceeding pre-Covid charges of N$54.3 million reported for the six months ended 31 December 2019.
The Group reflected a healthy liquidity position as at 31 December 2021 as the Group’s liquid assets increased by 10.1% year-on-year. Liquid assets exceeded regulatory requirements in Namibia and Botswana by 109% and 55% respectively.
The Group declared an interim dividend of 32 cents per ordinary share. The interim dividend per share for the period under review is 45.5% higher than the final dividend per share of 22 cents declared during February 2021.
Prinsloo says following modest economic growth in Namibia and Botswana in 2021, Capricorn Group expects further economic recovery as Covid-19 restrictions are relaxed and the global pandemic inches closer to endemic status.
“Thus, the outlook is for improved economic conditions both in Namibia and Botswana, albeit from a lower base. As we embark on the future, the stability and sustainability of the Group for the benefit of all stakeholders remain our key priority,” he added.
Capricorn Group Limited is a Namibian financial services group listed on the Namibian Stock Exchange, with diversified operations and business interests in Namibia and Botswana.
The sale of the Group’s banking operation in Zambia was concluded on 4 January 2021. Consequently, the N$40.9 million losses made by its Zambian operations in the comparative period were not repeated in the current period. See the full report of the Group’s interim results here.
