STAFF WRITER
Capricorn Group shareholders will smile all the way to the bank after the financial institution posted N$920 million profit after in its interim financial results for the six months ended 31 December 2025.
As a result the Group declared an interim dividend of 58 cents per ordinary share, representing a 4.9% decrease from the prior period’s 61 cents.
The group said the performance comes at the back of a demanding operating environment marked by margin pressure and increased credit impairments.
“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. We remain focused on strengthening our diversified business model and supporting our clients,” Capricorn Group Chief Executive Officer David Nuyoma said while commenting on the performance.
The group sustained positive top-line momentum, underpinned by its diversification strategy, with strengthened revenue base.
Key highlights include net interest income which increased by 2.1% to N$1.69 billion, non-interest income which grew by 3.6% to N$1.34 billion.
The group said this was driven by a 29.6% increase in net trading income, and a 35% rise in asset management fees, supported by assets under management reaching N$63 billion.
Capricorn Group said the outlook will see them cautiously optimistic about a gradual recovery of the Botswana economy.
“These macroeconomic trends provide a more favourable environment for our markets and support our expectations for improved performance in the year ahead,” Nuyoma said.
The Group said its credit impairment charges increased to N$286 million(Dec 2024: N$187 million) due to higher stage 3 loans in both Namibia and Botswana while non-performing loans rose by 9.0%, resulting in an NPL ratio of 4.9% (Dec 2024: 4.6%).
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