Namibia’s Capricorn Group logs $115M profit, holds payout despite dip

Capricorn Group, the Windhoek-based financial services group listed on the Namibian Stock Exchange, reported profit after tax of N$1.87 billion ($115.2 million) for the year ended June 30, 2026. Earnings fell 6.4 percent from N$1.99 billion a year earlier as higher funding costs and weaker regional conditions weighed on results.

The group’s headline earnings per share declined to N$3.44 from N$3.70, while basic earnings per share fell to N$3.44 from N$3.67. Return on equity also weakened to 15.6 percent from 18.2 percent, reflecting pressure on profitability during the year as economic conditions in key markets, particularly Botswana, became less supportive.

Dividend holds despite pressure

Capricorn’s board declared a final ordinary dividend of N$0.77 per share, up from N$0.74 in 2025. Combined with the N$0.58 interim dividend, total ordinary dividends for the year reached N$1.35 per share, unchanged from the previous financial year despite the decline in earnings.

The group did not declare a special dividend, compared with N$0.36 per share paid in 2025. As a result, total distributions fell to N$1.35 per share from N$1.71 a year earlier. The final dividend is scheduled for payment on Oct. 22, 2026, to shareholders registered on Oct. 9.

Botswana weighs on earnings

Capricorn said operating conditions across southern Africa affected performance during the year, with higher funding costs and weaker economic activity in Botswana weighing on earnings. Fully diluted earnings per share fell to N$3.40 from N$3.60, adding to the pressure on the group’s overall profitability.

Management focused on liquidity, funding and balance sheet efficiency as market conditions tightened. The loan-to-funding ratio improved to 83.6 percent from 88.8 percent in 2025, indicating a stronger funding position. The group also continued to build capital, giving it additional capacity to absorb pressure across its markets.

Capital buffers strengthen

Capricorn’s total risk-based capital adequacy ratio increased to 19.4 percent from 18.1 percent, leaving the group with a stronger capital buffer above regulatory requirements. The improvement came as the lender balanced shareholder distributions with capital retention and tighter balance sheet management during a more difficult operating year.

Capricorn Group operates commercial banking, wealth management, microfinance and insurance businesses, with core operations in Namibia and Botswana. Despite the earnings decline, net asset value per share rose 6.7 percent to N$22.77 at June 30, from N$21.35 a year earlier, supported by continued capital accumulation.

The increase in net asset value per share gives shareholders a stronger capital base even as profitability moderated. For Capricorn, the 2026 financial year was marked by lower earnings, tighter funding conditions and softer regional activity, but also by stronger liquidity and capital ratios and a decision to preserve the ordinary dividend.