Listed financial services group Capricorn Group Limited reported a 28.7% surge in its after-tax profit, soaring N$1.47 billion for the fiscal year ending on June 30, 2023.
The notable increase can be attributed to improved net interest margins, reduced credit impairment losses, robust growth in non-interest income, and streamlined operational efficiency.
The parent company of Bank Windhoek declared a final dividend of 61 cps, culminating in a total dividend payout of 100 cps for the year.
Capricorn Group out-going Chief Executive Officer Thinus Prinsloo highlighted that the dividend marks a 38.9% increase compared to the 72cps per share for 2022.
“The group continues to balance offering attractive returns for shareholders with retaining capital to drive growth and diversification,” he said.
During the period under review, the group significantly increased the total value created by N$728 million, totalling N$4.4 billion compared to the previous financial year.
Of this total value created, 26.4% was directed towards staff remuneration and benefits, 18.3% was disbursed to suppliers, and a substantial 22.6%, amounting to N$1 billion, was contributed to the government in the form of direct and indirect taxes.
Prinsloo emphasised the organisation’s unwavering commitment to a sustainable future for both the group and its stakeholders.
“As responsible corporate leaders, we must challenge our relevance to stakeholders and continuously re-evaluate how we make an impact. I am pleased that our commitment to improving lives through leadership in financial services by being connectors of Positive Change has impacted many lives positively this past financial year, resulting in value creation of note for all our stakeholders,” he stated.
Meanwhile, the return on equity witnessed an improvement from 15.0% in FY22 to 17.6% in FY23.
Notable financial metrics reveal that net interest income rose by 16.3% year-on-year, amounting to an increase of N$381.1 million, totaling N$2.72 billion.
In parallel, non-interest revenue saw a substantial growth of 13.1% year-on-year, reaching N$1.89 billion.
Capricorn Group is a Namibian listed company that acts as an investment holding company and provides consulting and support services to the other group companies.
Its main investments comprise 100% shareholdings in Bank Windhoek Ltd (BW), Namib Bou (Pty) Ltd, Capricorn Capital (Pty) Ltd, Capricorn Investment Group (Pty) Ltd and Capricorn Hofmeyer Property (Pty) Ltd. The company has a 84.8% shareholding in Capricorn Investment Holdings (Botswana) Ltd, which in turn holds 100% of the share capital in Bank Gaborone Ltd (BG) and Peo Finance (Pty) Ltd, 95.7% in Capricorn Asset Management (Pty) Ltd and Capricorn Unit Trust Management Company Ltd, a 55.5% shareholding in Entrepo Holdings (Pty) Ltd (Entrepo) which owns 100% of Entrepo Life Ltd and Entrepo Finance (Pty) Ltd, a 29.5% shareholding in Sanlam Namibia Holdings (Pty) Ltd, a 28% shareholding in Santam Namibia Ltd, and a 30.0% shareholding in Paratus Group Holdings Ltd.
