BUSINESS MODEL

We have long-standing and new customers across diversified segments in Namibia and Botswana 

We contract with a range of reliable suppliers 

 Customer loyalty: Bank Windhoek is the largest locally owned bank and the second largest commercial bank in Namibia 

Bank Windhoek has a 35.2% market share, and Bank Gaborone has a 7.5% market share in loans and advances 

The Foundation and Changemaker initiatives contribute to communities in need 

 The Capricorn brand is recognised in the region​

• We increased our social and relationship capital investment through the Foundation to support stakeholders in need
• We progressed our sustainability strategy and developed a multi-year sustainability integration programme to be rolled out across the Group

Outcomes:

More people are banking and insured

We make positive community impacts through the Foundation and Changemaker platform

The number of transactions increased

Our Net Promoter Score increased to 45%

Bank Windhoek​ received more awards

• A  wider variety of products and services will be linked to the Capricorn Group brand and underlying entities ​
• Products and services will be simplified and easy to access
• Less waiting time for customers and better customer experiences
• More competitive offerings 
• New clients in new markets/segments
• New partnerships across banking and digital
• Shifts in priorities and CSR based on stakeholder feedback and responses

Input:

1,930 permanent employees

N$14.9 million training investment to upskill employees

• Financial risk, IT and data skills will be difficult to fill and expensive in the short to medium term.

Outcomes:

Employee turnover annualised at 8.56% 

Absenteeism at 3.02%

Mirror survey results from 93% participation rate, engagement score of 86% and a fully engaged score of 56%

1,690 employees received training

90 bew jobs created

• Higher skills levels in data and digital
• One team culture across subsidiaries
• More diversified, inclusive and equity-representative teams
• Improved employee engagement based on the Mirror survey

Input:

Over 240 years collective board member experience

We have a Risk Culture and 16 principal risks, each with a risk owner

We drive ethics awareness and behaviour through the Group Code of Ethics and Conduct Policy, The Capricorn Way and Suppliers Code of Conduct

• We completed phase 1 of the #gobeyond programme and are planning the next stage of our digital transformation roadmap
• We have maintained our investments in cyber resilience

Outcomes:

New capabilities launched via bank and MyCapricorn apps

Non-performing loans (“NPLs”) mitigated through effective and proactive processes

Limited losses due to financial crime

• More customer data available for analysis and insights 
• We invest in digital transformation to create the bank of future
• King IV™ is fully embedded in all subsidiaries
  

Input:

Retained income of N$7.5 billion (2022: N$6.5 billion) 

Total assets of N$63.4 billion (2022: N$60.4 billion)

Total loans and advances of N$45.4 billion (2022: N$43.2 billion) 

Total deposits of N$45.8 billion (2022: N$43.6 billion) 

CAM AUM of N$38.6 billion (2022: N$32.1 billion)

• Liquidity in Namibia has improved considerably in 2023, supporting the availability of capital for growth projects. Liquidity in Botswana will remain constrained in the short to medium term

Outcomes:

Value created for all stakeholders (see value added statement) and dividends paid

Cost to income ratio down to 50.8% 

Return on equity of 17.6% (2022: 15.0%)

Capricorn Group remains well capitalised 

Business development plans are progressing

• More diversified income streams with less exposure to interest rates
• Scale achieved in Botswana will have a positive cost impact based on transaction volumes
• Strong growth from new ventures making a material contribution to operating profit 
• Available and optimised capital and funding

Input:

67 branches/agencies, 183 ATMs (including self-service ATMs), 4,285 merchants and 5,590 POS devices 24-hour customer contact centre

IT systems and business continuity facilities 

Digital banking, apps and other platforms

• We are rolling out a new branch design to create a ‘branch of the future’ network.

Outcomes:

Capricorn Group’s footprint increased

Lower levels of cash in branches as more customers use digital banking

• Expanded digital footprint and capabilities
• Scalable digital offerings/platforms

Input:

Environmental and Social Management System Water, energy and paper

• Climate impacts from physical and transition risks and infrastructure quality might become a business constraint in the medium to long term. 
• When we invest in a new building or renovate an existing one, we aim to improve our energy and water efficiencies
• Bank Windhoek’s green and sustainability bonds positioned the bank as a leader in sustainability finance. This is a growth area over the short, medium and long term.

Outcomes:

We deployed N$182 million in funding for sustainable development projects and renewable energy through the Bank Windhoek sustainability bond

• Operational efficiency will optimise resource use
• Bank Windhoek will remain a leader in sustainable financing