Capricorn Group Limited has announced robust financial results for the six months ended December 31, 2023. The Group reported a significant increase in profit after tax, driven by growth in the loan book and increased transaction volumes, despite facing escalated credit impairment charges.
Financial Highlights
Capricorn Group achieved solid financial results, with profit after tax rising by 18.5% to N$ 827.6 million compared to N$698.2 million in the same period last year. Earnings per share (EPS) increased by 19.4% to 152.4 cents, demonstrating the Group’s strong performance. The return on equity (ROE) increased from 16.6% to 16.8% year-on-year, highlighting the Group’s efficiency in generating returns for shareholders.
| Metric | 6 months ended 31 Dec 2023 (N$’000) | 6 months ended 31 Dec 2022 (restated)* (N$’000) |
|---|---|---|
| Operating profit | 999 743 | 899 397 |
| Profit after tax | 827 644 | 769 781 |
| Basic earnings per share (cents) | 152.4 | 142.1 |
| Fully diluted earnings per share (cents) | 151.5 | 141.6 |
| Headline earnings per share (cents) | 152.4 | 142.1 |
| Net asset value per share (cents) | 1 786 | 1 561 |
| Interim Dividend per share (cents) | 48 | 39 |
| Total risk-based capital adequacy ratio (%) | 17.6 | 16.6 |
Impact of IFRS 17
The Group’s profitability was further enhanced by the implementation of IFRS 17 – “Insurance Contracts,” resulting in reduced discretionary policyholder reserves. Excluding the positive impact of IFRS 17, the Group’s return on equity would have been 17.3% for the period.
Dividend Declaration
Capricorn Group declared an interim dividend of 48 cents per ordinary share for the six months ended December 31, 2023. The dividend will be payable on April 5, 2024, to shareholders on record as of March 22, 2024.
Economic Outlook
Despite challenges such as weakened global demand and an expected contraction in the agriculture sector, the central banks of Namibia and Botswana have adopted prudent monetary policies to counteract inflationary pressures. The Bank of Namibia’s Economic Outlook for December 2023 predicts a deceleration in economic growth, with real GDP growth rates of 3.9%, 3.4%, and 3.1% for the years 2023, 2024, and 2025, respectively.
Future Prospects
Capricorn Group remains committed to sustained growth for the benefit of all stakeholders. The Group’s strong financial performance reflects its resilience and strategic focus amid challenging market conditions. Shareholders can access the full interim results announcement on the Group’s website or via the Namibian Stock Exchange link.
