Chamwe Kaira
Capricorn Group Limited has warned shareholders that its financial performance for the interim period ended 31 December 2025 will be weaker than the prior year, mainly due to higher credit impairment charges and softer economic conditions in parts of its regional operations.
In a trading statement issued in line with Namibia Securities Exchange listing requirements, the group said profit after tax, earnings per share and headline earnings per share are expected to decline by between 10% and 15% compared to the same period in 2024.
The group said the expected decline is largely driven by increased credit impairment charges in Namibia and Botswana, reflecting pressure on borrowers in a challenging economic environment.
In Namibia, the ongoing interest rate-cutting cycle has weighed on net interest income, while weaker economic conditions in Botswana also affected year-on-year performance.
The Capricorn Group observed that its external auditors have not reviewed or reported on the trading statement.
The group’s interim financial results for the six months ended 31 December 2025 are expected to be published on or about 26 February 2026.
By comparison, the group reported strong results for the six months ended 31 December 2024.
Profit after tax rose by 28.4% to N$1.06 billion, up from N$827.6 million in the previous year. Earnings per share increased by 29.1% to 196.8 cents, while annualised return on equity improved from 16.8% to 19.1%.
The group previously said this performance was driven by solid results across its subsidiaries, including Bank Windhoek, Bank Gaborone, Capricorn Asset Management, Entrepo and Peo Finance, as well as its associates.
During the same period, non-interest income increased by N$179 million, or 16.1%, supported by higher transaction and trading volumes. Transaction-based fee income grew by 13.6%, while net trading income increased by 16.3%.
Assets under management rose to N$52.2 billion from N$46.6 billion in June 2024. This led to a 19.2% increase in asset management fees to N$122 million.
For the six months ended 31 December 2024, the group declared an interim dividend of 61 cents per ordinary share, up from 48 cents in the comparable period.
Caption
Capricorn Group Limited expects weaker interim results for the period ended 31 December 2025, mainly due to higher credit impairment charges.
- Photo: Contributed
