Capricorn Group profit falls to N$1.87 billion amid economic pressure

Capricorn Group reported a profit after tax of N$1.87 billion for the financial year ending 30 June 2026, representing a 6.4% decrease from the previous year. The decline was attributed to higher funding costs, economic challenges in Botswana, and increased credit impairments.

Despite the drop in earnings, the group's market capitalisation rose by approximately N$4 billion as its share price on the Namibian Securities Exchange increased by nearly 30%. The share price moved from N$21.64 in June 2025 to N$28.12 by June 2026. Group financial director Johan Maass noted that market sentiment reflects confidence in the company's fundamentals, suggesting the results should be viewed against the exceptional performance of the prior year.

The group's total assets grew by 3.9% to N$75.3 billion, and deposits increased by 6.3% to N$56.2 billion. Non-interest income rose by 8.3% to N$2.62 billion, contributing 47.7% of operating income and reducing reliance on interest-rate-driven earnings. The total risk-based capital adequacy ratio also improved to 19.4% from 18.1% in 2025.