Namibian Stock Exchange listed, Capricorn Group Limited released its annual financial results for the year ended 30 June 2021, with profit after tax increasing by 14.8% to N$983.0 million. The listed Group’s net interest income before impairment charges increased by 3.3% to N$2.26 billion for the period under review.
Non-interest income of the Group increased by 3.6% to N$1.48 billion compared to N$1.42 billion the previous year, with Bank Windhoek and Bank Gaborone non-interest income up 4.3% and 28.8% respectively, mainly from increased transaction volumes.
The contribution from associates to the Group profit after tax increased from 6.3% in the prior year to 10.1%, with income from associates up 62.6% compared to the prior year.
The increased according the Capricorn, was mainly due to a N$29.7 million increase in the contribution from Paratus Group, in which it holds a 30% stake in the information and technology company.
Operating expenses for the period increased by 5.1% compared to the prior year’s 3.4% increase, with technology costs up 12.6% largely due to weaker Namibian and Botswana currencies, and investment in growing the Group’s digital offerings.
Losses from discontinued operations decreased by N$114.4 million ,73.5% after the disposal of Cavmont Bank Ltd on 4 January 2021. As part of the deal, Capricorn Group entered into a N$285 million agreement to merge the loss-making Zambia operations with another bank, Access Bank Zambia Limited.
Capricorn was to reinvest the N$285 million in the merged bank for a period of five years and thereafter withdraw.
Capricorn Group’s total non-performing loans’s increased from N$1.92 billion to N$2.46 billion, a 28.1%, resulting in an increase in the NPL ratio from 4.7% to 5.2%, largely attributed to COVID-19’s impact on sectors such as travel, tourism, hospitality and construction, which resulted in deferments of instalments.
The Group declared a final dividend of 38 cents per ordinary share for the period.
“I am pleased with the commendable performance of the Group against all the odds. All our subsidiaries performed above expectations and have managed to grow or maintain market share during the financial year, giving the Group a strong foundation to continue growing and expanding its leadership in the various markets. We have a dynamic business model to create and preserve value while remaining true to our Group’s purpose,” Capricorn’s Group CEO Thinus Prinsloo said.
Capricorn Group owns Bank Windhoek, Bank Gaborone in Botswana, Capricorn Asset Management, with a 55.5% stake in Entrepo Holdings (Pty) Ltd, 29.9% stake in Sanlam Namibia Holdings and 30% stake in Paratus Group Holdings, among other investments.
