Capricorn Group, a leading financial services group founded by Namibian tycoon Jacobus “Koos” Brandt, has reported a double-digit increase in profit in the first half of its 2022 fiscal year, as the group continues to benefit from an improved operating environment and less stringent COVID-19 restrictions.
Profit increased by 23.8 percent from NAD469.06 million ($30.6 million) in the first half of 2021 to NAD580.5 million ($37.95 million) in the same period of 2022, according to the group’s consolidated interim financial results for the six months ending Dec. 31, 2021.
The double-digit profit growth may be attributed to improved economic activity, although from a low base, which had a favorable impact on the group’s operational environment.
This favorable impact resulted in a single-digit rise in net-interest income, which was driven by a 50-basis-point improvement in Bank Windhoek’s net interest margins as a consequence of successful financing repricing.
Non-interest revenue, which is mostly derived from fees like deposit and transaction fees, rose by 18.4 percent, or NAD130.1 million ($8.45 million), to NAD836.5 million ($54.34 million) during the period under review.
In the balance sheet, the group’s total assets increased from NAD56.2 billion ($3.65 billion) to NAD57.37 billion ($3.72 billion), while shareholder equity increased from NAD6.98 billion ($453.4 million) to NAD7.5 billion ($487.2 million).
As a result of the robust earnings, the board of directors declared an interim dividend of NAD0.32 ($0.02079) per share, payable on March 30. This is a 45.5-percent increase over the previous year’s interim dividend of NAD0.22 ($0.01429) per share.
Capricorn Group is a financial services conglomerate with businesses in banking, micro-lending, property development, and unit trust and asset management in Botswana and Zambia.
Bank Windhoek is its main brand. It is Namibia’s largest locally-owned bank and the country’s second-largest commercial bank.
As of press time on March 1, the bank’s shares were trading at NAD13.1 ($0.851), 1.71-percent higher than their starting price on the local exchange the day before, Feb. 28.