Capricorn Group Limited has reported a 14.8% increase in profit after tax to N$1.99 billion for the financial year ended 30 June 2025, up from N$1.74 billion the previous year. Return on equity rose to 18.2% from 17.9%.
Group Chief Executive Officer, David Nuyoma, said the results reflected the resilience of the company’s operations in Namibia and Botswana.
“This year’s achievements are a direct result of the collective effort of everyone in the organisation. Our commitment to improving lives through leadership in financial services by being Connectors of Positive Change has positively impacted many lives this past financial year. Our performance across key indicators demonstrates the strength of our business and the resilience of our teams across our portfolio of businesses,” he said.
The Group said it created N$5.7 billion in value during the year, an increase of 11.7% compared to the previous year.
Of this total, N$1.4 billion went to employee remuneration and benefits, N$1.1 billion was paid to suppliers, most of whom are local, while N$1.4 billion was contributed to government through direct and indirect taxes.
A further N$26.7 million was invested in communities, according to its Social Value Report released earlier this month.
Group Financial Director, Johan Maass, said the results reflected “excellent results and solid all-round performances across the Group’s portfolio of businesses in Namibia and Botswana, which includes the banking subsidiaries, Bank Windhoek and Bank Gaborone, as well as Capricorn Asset Management, Entrepo, Peo Finance and our associates Paratus, Sanlam Allianz Namibia and Santam Namibia.”
The Group reported that net interest income before impairment charges increased by 10.1% to N$3.4 billion, supported by loan book growth of 3.7% and effective management of funding costs, which helped offset the impact of lower interest rates.
Non-interest income rose by 13.1%, driven by higher transaction-based fees, particularly on digital channels, and stronger growth in asset management fees at Capricorn Asset Management.
Operating expenses according to group, increased by 10.8%, mainly due to higher variable banking costs, greater transaction and trading volumes, as well as increased employee and technology costs.
Despite this, the Group’s cost-to-income ratio improved to 49.5% from 50.0%, which it said remains well below its internal threshold of 52%.
Asset quality was maintained with non-performing loans stable at 4.0%. Impairment charges decreased to N$315 million from N$328 million, while the loan loss rate improved to 0.61% from 0.67%.
Gross loans and advances for the period increased by 3.6% to N$52.5 billion, driven by term loans, mortgages and instalment finance.
Capricorn’s liquidity remained strong, with liquid assets rising to N$18.7 billion.
Surpluses over minimum regulatory requirements stood at 182% in Namibia and 81% in Botswana. The loan-to-funding ratio increased to 88.8% from 86.3%, but remained below the Group’s internal threshold of 90%.
The Group ended the year with a total risk-based capital adequacy ratio of 18.1%, well above the regulatory minimum of 12.5%. It said this ensured continued financial resilience and positioned it to absorb potential shocks while supporting future growth.
Capricorn declared a final ordinary dividend of 74 cents per share. Together with the interim dividend of 61 cents, the total ordinary dividend for the year amounts to 135 cents per share, representing a 20.5% year-on-year increase from the 112 cents declared in 2024.
In addition, a special dividend of 36 cents per share was announced, bringing the total payout for the year to 171 cents per share.
The Group said the final and special dividends will result in a combined dividend payment of 110 cents per share to shareholders on 24 October 2025. As a result, the dividend payout ratio increased to 44.5% from 33.4%.
Nuyoma said Capricorn’s strategic choices had positioned it to remain “agile, resilient and impactful,” pointing to promising growth opportunities in Namibia, particularly in the renewable energy sector. “Capricorn Group is honoured to participate in conversations about Namibia’s energy future and to back efforts promoting sustainable growth and development,” he added.
