Capricorn Group has reported profit after tax of N$920 million for the six months ended 31 December 2025, delivering a resilient performance despite margin pressure and rising credit impairments during a demanding operating period.
The Namibia Securities Exchange-listed financial services group, which operates diversified banking and financial services businesses in Namibia and Botswana, achieved a return on average equity of 15.0% for the reporting period.
Group Chief Executive Officer David Nuyoma said the results reflect disciplined execution and continued investment in long-term strategic priorities amid an interest rate cutting cycle.
“Our disciplined execution and commitment to long-term strategic investments allowed us to maintain strong operational momentum despite the challenges posed by the current interest rate cutting cycle. We remain focused on strengthening our diversified business model and supporting our clients,” Nuyoma said.
Net interest income increased by 2.1% to N$1.69 billion, supported by 2.6% year-on-year growth in gross loans and advances. Non-interest income rose by 3.6% to N$1.34 billion, driven by a 29.6% increase in net trading income and a 35% rise in asset management fees as assets under management reached N$63 billion.
Non-interest income contributed 48.8% of total income, up from 46.8% in the corresponding period last year, reflecting the group’s diversified revenue base.
Credit impairment charges increased to N$286 million compared with N$187 million in December 2024, mainly due to higher stage three loans in Namibia and Botswana. Non-performing loans rose by 9.0%, resulting in a non-performing loan ratio of 4.9%, up from 4.6% a year earlier.
Operating expenses grew by 11.2% to N$1.66 billion, reflecting ongoing investment in people and technology. Staff costs increased by 5.3%, while technology-related expenses rose by 20.8% as the group continued to invest in digital transformation and operational capability.
Capricorn Group maintained a strong liquidity position, with liquid assets increasing to N$18.9 billion from N$18.3 billion in the prior period. Statutory liquid assets remained well above regulatory requirements in both Namibia and Botswana.
The group’s total risk-based capital adequacy ratio stood at 18.3%, supporting balance sheet resilience and future growth. Gross loans and advances increased by 1.4% since 30 June 2025, driven mainly by growth in term lending and asset finance.
Capricorn Group said it remains cautiously optimistic about economic conditions in its operating markets. Namibia’s economy is projected by the Bank of Namibia to grow by 3.8% in 2026, supported by easing inflation and broad-based economic activity, while Botswana’s economy is expected to expand by around 3.1% amid stabilising global diamond demand and ongoing structural reforms.
“These macroeconomic trends provide a more favourable environment for our markets and support our expectations for improved performance in the year ahead,” Nuyoma said.
During the period, the group generated N$2.9 billion in direct value for stakeholders, including N$703 million paid to employees, N$623 million to government and regulators, N$563 million to shareholders and N$680 million to suppliers.
Community investments totalled N$21 million, while N$272 million was retained to support future expansion.
The board declared an interim dividend of 58 cents per ordinary share, down from 61 cents in the prior period, reflecting a prudent capital management approach while maintaining sustainable shareholder returns.
