Capricorn Group posted a profit after tax of N$1.06 billion for the six months ending 31 December 2024, reflecting a 28.4% increase from N$827.6 million in the previous year.
Earnings per share rose by 29.1% to 196.80 cents, while return on equity improved from 16.8% to 19.1%, the group announced.
Capricorn Group CEO David Nuyoma credited the performance to strong contributions from subsidiaries, including Bank Windhoek, Bank Gaborone, Capricorn Asset Management, Entrepo, and Peo Finance.
“Our outlook for Namibia’s economy is promising, with expected growth of 4% in 2025 driven by a resurgence in primary industries and positive performance in secondary sectors like manufacturing, electricity, and water,” Nuyoma said.
He added that Botswana’s GDP is anticipated to grow between 3% and 4% in 2025, recovering from the 2024 contraction due to the global diamond market slump.
Despite the strong financial results, Capricorn’s loan book growth remained sluggish.
Gross loans and advances increased by N$1.18 billion since 30 June 2024, reaching N$51.8 billion.
The group attributed this growth primarily to term loans, which rose by N$583 million, and installment finance, which increased by N$403 million.
Overdrafts and mortgage loans saw marginal increases of N$99 million and N$100 million, respectively.
Analysts expressed concerns over the pace of loan growth.
Simonis Storm Junior Equity Analyst Kara van den Heever noted that the 2.3% increase in gross loans and advances fell short of expectations.
“Capricorn’s loan book growth is falling short of what’s needed to sustain earnings momentum. The composition of this growth is underwhelming, with term loans and installment finance providing most of the uplift, while mortgage loans and overdrafts barely moved the needle,” van den Heever said.
She also questioned whether Capricorn was taking a cautious approach to credit risk.
“If so, that’s understandable given the economic backdrop, but without stronger loan book growth, pressure on net interest income will eventually catch up. The bottom line—Capricorn either needs to accelerate lending or face an earnings slowdown as margins compress,” she added.
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% shareholding in Paratus Group Holdings Ltd.
