WINDHOEK – For the six months that ended on 31 December 2018, the Capricorn Investment Group Limited (Capricorn Group) increased it operating profit by 11.5 percent to N$674.3 million and group profit before tax increased by 8.5 percent to N$714.2 million. Also, the group delivered growth in headline earnings per share of 9.6 percent to 93.5 cents in the first half of this financial year as revealed in their interim results released on Friday, which follows fairly flat earnings over the last two years. 

The Capricorn Group, a financial services group listed on the Namibian Stock Exchange and with interests in Namibia, Botswana and Zambia, also increased gross loans and advances by 12.6 percent to N$38.4 billion, increased its net asset value by 5.4 percent to N$5.6 billion and grew non-interest income by 8.3 percent to N$636.9 million. 
According to their statement the good growth in operating profit is due to good performance by subsidiaries delivering on their strategies, despite difficult operating environments. 

“Bank Windhoek delivered above expectations during this period, while Entrepo made a substantial contribution to the group profit during its first six months in the group. Bank Gaborone and Capricorn Asset Management performed in line with their targets for growth and profitability.  The Zambian operation has improved during the six months ended 31 December 2018 compared to the previous six months ended 30 June 2018. Sharp declines in investment income and challenging market conditions for underwriters resulted in income from associates reducing by 26.3 percent compared to the previous year. The group declared an interim dividend of 30 cents per ordinary share,” read the statement. 

“The group increased net interest income by 21.5 percent mainly as a result of the improved net interest margins by the Namibian operations. This was offset by a decreasing net interest margin in Botswana and Zambia as a result of increased cost of funding due to liquidity pressures. Operating expenses increased 20.6 percent year-on-year. This increase is mainly due to the addition of Entrepo to the group (contributing 2.4 percent of the growth), increase in operational banking expenses as a result of higher transaction volumes (3.9 percent of the growth) and staff costs, contributing to 10.1 percent of the growth. Staff cost increased by 18.8 percent which is mainly as a result of annual salary increases and filling of vacancies,” said Jaco Esterhuyse, Financial Director of Capricorn Group. 

“Following fairly flat results during the past two financial years during which the Namibian economy was in a recession, it is gratifying to report positive growth for the group during the period under review. The group is confident that this growth will be maintained for the remainder of the financial year as it delivers on its strategy. Beyond this financial year, in an economy that is showing signs of slow improvement, the group believes that by delivering on its strategy, diversifying its investments, continuing its focus on operational excellence and customer services through its operating subsidiaries and effectively executing the turnaround plan for Zambia, we will be able to continue delivering satisfactory results and value to all stakeholders,” said Thinus Prinsloo, Group CEO.