Capricorn Group reports N$920m profit

The Capricorn Group has reported a profit after tax of N$920 million for the interim period ending 31 December 2025, achieving a return on average equity of 15%.

The Group said net interest income increased by 2.1% to N$1.69 billion, supported by a 2.6% year-on-year growth in gross loans and advances. Non-interest income grew 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. The Group’s assets under management have now reached N$63 billion.

David Nuyoma, Group CEO, said the performance demonstrates resilience. “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,” Nuyoma said.

Credit quality and impairments

The Group said credit impairment charges increased to N$286 million, up from N$187 million in December 2024. This rise was attributed to an increase in Stage 3 loans in both the Namibian and Botswanan markets. Non-performing loans (NPLs) rose by 9%, resulting in an NPL ratio of 4.9%, compared to 4.6% in the previous period. Despite these pressures, the Group said it remains committed to prudent provisioning and proactive credit risk management.

Operating expenses and strategic investment

Operating expenses grew by 11.2% to N$1.66 billion. The Group said this reflects a 5.3% increase in staff costs and a 20.8% rise in technology-related expenses. These investments are part of a broader strategy to enhance digital transformation and secure long-term competitiveness.

The Group maintained a healthy liquidity position, with liquid assets rising to N$18.9 billion. Statutory liquid assets remained well above regulatory requirements in all operating markets. Capricorn Group said its capital position remains robust, with a total risk-based capital adequacy ratio of 18.3%, providing a strong foundation for future growth.

Gross loans and advances have increased by 1.4% since 30 June 2025, primarily supported by growth in term loans and instalment sale agreements (article finance). The Board declared an interim dividend of 58 cents per ordinary share. The Group said this represents a 4.9% decrease from the 61 cents declared in the prior period.