Capricorn Group’s interim financial results reflect strong growth and increased dividends
Financial services conglomerate listed on the Namibian Stock Exchange, Capricorn Group, this week released its interim financial results for the six months ending on 31 December 2023.
The Group reported a solid performance, with a notable 18.5% increase in profit after tax compared to the previous year, reaching N$827.6 million.
This translates to a 19.4% rise in earnings per share to 152.4 cents and a year-on-year increase in annualized return on equity from 16.6% to 16.8%.
Thinus Prinsloo, the Group Chief Executive attributed the strong performance to growth in the loan book and increased transaction volumes, partially offset by higher credit impairment charges. He also noted the positive impact of implementing IFRS 17 – “Insurance Contracts”, particularly in reducing discretionary policyholder reserves. Excluding this impact, the return on equity would have been 17.3% for the period.
The financial highlights include a 12% year-on-year increase in net interest income, driven by higher interest rates and prudent management of funding costs. However, impairment charges rose by N$98 million to N$252.8 million due to the economic impacts of increased inflation rates and higher interest rates. Non-interest income grew by 19.0%, mainly from fee and commission income and net trading income.
Operating expenses increased by 11.5%, primarily due to higher operational banking expenses linked to increased transaction volumes. The Group’s liquidity position remained healthy, with liquid assets exceeding regulatory requirements in Namibia and Botswana. Gross loans and advances increased by N$3.9 billion year-on-year.
Asset quality remained a focus, with total non-performing loans contained at N$2.66 billion. The Group’s capital adequacy ratio strengthened to 17.6% as of 31 December 2023. An interim dividend of 48 cents per ordinary share was declared, reflecting a 23.1% increase compared to the previous period.
Meanwhile, overall, Capricorn Group’s positive financial performance has contributed to socio-economic development in Namibia and Botswana, benefiting stakeholders including employees, government, shareholders, suppliers, and communities.
