Capricorn reports 15% return on equity

Chamwe Kaira 

Capricorn Group Limited reported profit after tax of N$920 million for the six months ended 31 December 2025.

The group operates in Namibia and Botswana and is listed on the Namibian Securities Exchange. It achieved a return on average equity of 15.0% for the period.

Group CEO David Nuyoma said disciplined execution and continued investment in long-term initiatives supported performance during the current interest rate-cutting cycle.

Net interest income rose by 2.1% to N$1.69 billion. Gross loans and advances increased by 2.6% year-over-year. Non-interest income grew by 3.6% to N$1.34 billion. This was driven by a 29.6% rise in net trading income and a 35% increase in asset management fees. Assets under management reached N$63 billion.

Non-interest income accounted for 48.8% of total income, up from 46.8% in December 2024.

The group maintained a constructive outlook for Namibia and cautious optimism for Botswana. According to the Bank of Namibia, Namibia’s economy is expected to grow by 3.8% in 2026. Botswana’s economy is projected to expand by about 3.1%.

Nuyoma said these trends could create a more supportive operating environment.

Credit impairment charges increased to N$286 million from N$187 million in the previous period. This was linked to higher stage 3 loans in Namibia and Botswana. Non-performing loans rose by 9.0%, pushing the ratio to 4.9% from 4.6% in December 2024. 

The group said it remains focused on credit risk management and provisioning.

Operating expenses increased by 11.2% to N$1.66 billion. Staff costs rose by 5.3%. Technology expenses increased by 20.8% as the group continued to invest in digital systems and capabilities.

Liquid assets stood at N$18.9 billion, up from N$18.3 billion a year earlier. Statutory liquid assets remained above regulatory requirements in both countries. The total risk-based capital adequacy ratio was 18.3%.

Gross loans and advances increased by 1.4% since 30 June 2025, driven by growth in term loans and article finance.

During the period, Capricorn distributed N$2.9 billion in direct value to stakeholders. This included N$703 million to employees, N$623 million to government and regulators, N$563 million to shareholders, N$680 million to suppliers and N$21 million to communities. The group retained N$272 million for future growth.

The board declared an interim dividend of 58 cents per ordinary share, down from 61 cents in the previous period.

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