Capricorn Group Limited profit after tax increased by 9.9% to N$1.74 billion for the year ending 30 June 2024 compared to the previous year’s N$1.58 billion.
The financial services firm listed on the Namibian Stock Exchange’s return on equity (ROE) rose to 17.9% during the year, up from 17.6% the previous year.
Group CEO David Nuyoma said the positive financial performance for the period ending 30 June 2024 enabled the Group to create value for its stakeholders, contributing to the socio-economic development of Namibia and Botswana.
The Group increased its value created by 15.9% to N$5.1 billion compared to the previous financial year.
“Of the total value of N$5.1 billion created, N$1.3 billion is represented by staff remuneration and benefits, N$924 million was paid to suppliers, and N$1.2 billion was contributed to the government in the form of direct and indirect taxes,” he said.
This comes as the Group’s net interest income before impairment charges increased by 13.6% to N$3.1 billion during the year compared to N$2.7 billion in 2023.
Interest income growth was driven by higher interest rates and a 7.5% year-on-year growth in the loan book.
“Bank Windhoek’s net interest income grew by 9.9% in 2024 on the back of 4.6% loan book growth and the endowment effect of the higher interest rate cycle. Bank Gaborone’s net interest income increased by 40.8% due to continued loan book growth and an improved net interest margin,” said Nujoma.
Meanwhile, non-interest income increased by 14.2%, largely attributable to a 12.6% increase in transaction-based fees on the back of increased transaction volumes, especially on digital channels.
Similarly, asset management fees from Capricorn Asset Management increased by 12.9% due to strong growth in assets under management.
The CEO noted that the Group has well-developed capabilities to protect the quality of its lending assets.
During the financial year, the Group’s non-performing loans (NPLs) decreased on the back of some large recoveries.
The Group’s NPL ratio, excluding interest in suspense, improved from 4.5% in 2023 to 4.0%.
“Despite these large recoveries, the difficult macroeconomic environment and a prolonged period of higher interest rates negatively impacted credit risk indicators, leading to an increase in impairment charges to N$328.5 million (2023: N$235.6 million),” he said.
The Group’s loan loss rate increased from 0.51% to 0.67%, still in line with industry norms.
Moreover, gross loans and advances increased by 7.4% to N$50.7 billion this year, mainly attributable to growth in term loans and article finance.
For the period under review, Capricorn Group declared a final dividend of 64 cents per ordinary share, set to be paid on 18 October 2024.
Together with the interim dividend of 48 cents, this brings the total dividend to 112 cents per share for 2024, a 12% increase from 2023’s 100 cents.
The Group attributed the positive results to strong performances across its business portfolio, including Bank Windhoek, Bank Gaborone, Capricorn Asset Management, Entrepo Group, Peo Finance, and associates.
