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Capricorn Group releases interim results for period ended 31 December 2019

Capricorn Investment Group Limited reported satisfactory results today with group profit after tax of N$557 million for the six months ended 31 December 2019, increasing by 7.9% compared to the prior period. Core headline earnings per share, which excludes restructuring costs incurred in Zambia during July 2019, increased by 10.3% year on year.

“This solid performance is mainly as a result of subsidiaries delivering on their strategies, despite difficult operating environments. Bank Windhoek, Bank Gaborone, Entrepo and Capricorn Asset Management delivered above expectations during this period”, said Thinus Prinsloo, Group CEO.
Key financial highlights:
 Headline earnings per share increased by 6.4% to 99.5 cents per share
 Net Asset Value increased by 9.7% to N$6.1 billion
 Return on Equity: 16:4%
 Capital Adequacy: 14.6%

“Despite a 25 basis point rate cut in both Namibia and Botswana in August 2019, the Group increased net interest income by 7.9% to N$1.13 billion. Non-interest income increased by 5.1% to N$711.7 million. As customers migrate from traditional banking channels to digital channels, transaction income from electronic and digital channels increased by 12.1% year on year. Excluding the restructuring costs incurred in Zambia, operating expenses were contained to a 3.5% year on year increase, which is a reflection of the deliberate drive by the Group to contain costs during the current adverse economic times. During the period under review the Group maintained adequate funding and liquidity levels. Total funding increased year on year by 9.3%, while gross loans and advances increased by 5.5%. This translates to an improved loan to funding ratio of 89.0%. The Group remains well capitalised with a total risk-based capital adequacy ratio of 14.6% which is well above the minimum regulatory capital requirement of 10.0%”, said Jaco Esterhuyse, Financial Director.

An interim dividend of 30 cents per share was declared and will be paid to shareholders on 27 March 2020.

“Following the good results in the 2019 financial year when the Namibian economy experienced material contractions, it is gratifying to report another period of positive growth for the group amidst continuing difficult economic conditions. The group is confident that through its committed and capable Capricorn citizens, continuous focus to improve processes and investment in technology, it will be able to weather the economic storms and continue to perform well. Beyond this financial year, we remain positive that the group will continue its resilience, deliver positive results, create value for all our stakeholders and be a connector of positive change in the jurisdictions where we operate”, said Prinsloo.
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