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Capricorn Group Limited (“Capricorn Group" or “the Group") today announced its audited annual results for the year ended 30 June 2026, highlighting the resilience of its diversified financial services portfolio and a stronger balance sheet. In a challenging operating environment, especially in Botswana, disciplined balance-sheet management, robust capital and liquidity levels, and continued growth in diversified income streams enabled the Group to create sustainable value for stakeholders.
Profit after tax was N$1.87 billion, 6.4% below the prior year as the Group navigated macroeconomic pressure, higher funding costs and weaker economic conditions in Botswana. The result demonstrates the value of the Group's diversified portfolio and disciplined financial management in a demanding environment.
Despite these headwinds, prudent capital allocation, focused execution and strong financial fundamentals continued to create shareholder value. Net asset value per share increased by 6.7% to 2,277 cents, while the consolidated loan-to-funding ratio improved to 83.6% from 88.8%. The Group's total risk-based capital adequacy ratio strengthened to 19.4%, well above the regulatory minimum of 12.5%.
Key financial indicators
- Profit after tax of N$1.87 billion, down 6.4%
- Basic earnings per share of 343.7 cents, down 6.4%
- Net asset value per share of 2,277 cents, up 6.7%
- Non-interest income of N$2.62 billion, up 8.3%, contributing 47.7% of operating income
- Total assets of N$75.3 billion, up 3.9%
- Deposits of N$56.22 billion, up 6.3%
- Capital adequacy ratio of 19.4% (2025: 18.1%)
- Total ordinary dividend of 135 cents per share, unchanged from 2025
Diversified income supports resilience
The Group's diversified business model continued to provide resilience through the interest-rate cycle. Net interest income moderated by 1.9% to N$3.33 billion, while non-interest income increased by 8.3% to N$2.62 billion, supported by transactional income, trading revenue and asset-management fees.
Diversified earnings streams continued to provide stability through the economic cycle. Non-interest income increased to nearly half of operating income, reducing dependence on interest-rate-driven earnings and demonstrating meaningful progress in the Group's diversification strategy.
Non-interest income contributed 47.7% of operating income, exceeding the Group's 45% target and underscoring the progress of its diversification strategy.
Return on equity was 15.6%, compared with 18.2% in 2025. The year's result represents a moderation after a sustained period of strong growth, with the Group delivering a compound annual growth rate of 13.7% in profit after tax over the past five years.
Continued investment for future growth
Operating expenses increased by 7.6% to N$3.27 billion as the Group continued to invest deliberately in its people and digital transformation agenda. These investments in technology, critical skills, operational efficiency and customer experience are building capabilities for sustainable future growth. The cost-to-income ratio was 52.0%, compared with 49.5% in the prior year, in a lower-interest-rate environment.
Credit quality reflects economic pressure
Credit impairment charges increased to N$457 million from N$315 million and were the principal factor affecting earnings. The increase was largely concentrated in weaker economic conditions in Botswana and in financial stress on a limited number of significant client exposures, while the Group continued to manage credit risk prudently across its broader portfolio.
Gross loans and advances were N$51.5 billion, compared with N$52.5 billion in 2025, reflecting softer loan demand in Botswana and lower loan uptake at Entrepo following the discontinuation of the automated Payroll Deduction Management System. The Group's disciplined approach to lending preserves capacity to support customers and pursue quality growth opportunities as market conditions improve.
Strong capital and liquidity position
Capricorn Group maintained a strong balance sheet, with capital and liquidity ratios comfortably above regulatory requirements. Liquid assets increased by 18.9% to N$22.1 billion and deposits grew by 6.3% to N$56.2 billion.
The improved loan-to-funding ratio and stronger capital adequacy position provide the Group with the flexibility to navigate uncertainty and pursue future growth opportunities responsibly.
Creating shared financial value
Consistent with its purpose of being a Connector of Positive Change, Capricorn Group continued to create value for a broad range of stakeholders through employment, local procurement, taxation, shareholder returns, community investment and retained earnings that support future growth.
The Group created a total value of N$5.8 billion for its stakeholders during the financial year. This included N$1.4 billion for employees, N$1.3 billion for suppliers, N$1.3 billion in direct and indirect taxes, N$857 million for shareholders and N$29.7 million invested in communities. A further N$868 million was retained to support future growth opportunities. 86% of the Group's operating expenses are incurred locally.
Outlook
Namibia's emerging oil and gas sector, renewable energy developments and other growth sectors present significant long-term opportunities for the Group and its stakeholders. While geopolitical uncertainty and uneven economic conditions are expected to continue shaping the operating environment, Capricorn Group is well-positioned to respond with agility and discipline.
Supported by a diversified portfolio, strong liquidity, capital levels well above regulatory requirements and a disciplined strategic focus, Capricorn Group remains well-positioned to navigate uncertainty, support customers and communities, and capture growth opportunities across its markets.
Commenting on the Group's results, Group CEO David Nuyoma said, “Our 2026 performance demonstrates the resilience of our diversified business model, the quality of our people and the strength of our financial foundation. In a challenging operating environment, we strengthened our balance sheet, invested in future capabilities and continued to create meaningful value for our stakeholders.
Through intentional collaboration across the Group and disciplined execution of our strategy, we are well positioned to support our customers, communities and economies, capture emerging opportunities across our markets and deliver sustainable long-term value."
Dividend
The Board declared a final ordinary dividend of 77 cents per share. Together with the interim ordinary dividend of 58 cents per share, this brings the total ordinary dividend for the 2026 financial year to 135 cents per share, maintaining the ordinary dividend at the 2025 level and reflecting the Group's commitment to consistent shareholder returns. In line with its disciplined capital allocation approach, the Board did not declare a special dividend for 2026.
The last day to trade cum dividend is 2 October 2026, the first day to trade ex-dividend is 5 October 2026, the record date is 9 October 2026 and payment is scheduled for 22 October 2026.
