INVESTMENT CASE

Capricorn Group has a compelling investment case. Our strong financial position, diverse operations and deep local knowledge position the Group for sustained growth and quality earnings.

Financial resilience

All our subsidiaries and associates delivered strong financial results for 2024:

• The Group's profit after tax improved 10.0% to N$1.74 billion despite a difficult operating environment.
• The Group has a healthy balance sheet and is adequately capitalised to exploit growth opportunities.
• The Group's cost-to-income ratio improved to 50.0%, and cost discipline remains a priority while investing for future growth.

Access to capital

Capricorn Group has two shareholders of reference – the Government Institutions Pension Fund (“GIPF"), the largest institutional investor in Namibia, and Capricorn Investment Holdings (“CIH"), the founding holding company of Bank Windhoek. They ensure stability, liquidity and access to capital.

Diversification

We have a portfolio of diverse financial services-related offerings, including banking, asset management, microlending, insurance, and telecommunications, broadening our revenue streams while reducing our risks. We seek to increase collaboration and intersection points between our entities to unlock new possibilities and customer solutions.

The Group's non-interest income grew by 14.2% to N$2.14 billion, while profit share from associates grew by 200.7% to N$195.1 million over what was reported in the prior year, as we seek to reduce our dependence on net interest income.

Geographic expansion

We have operations in two countries and have the opportunity to expand our activities in Botswana. This could further increase operational efficiencies, gain market share, and increase our ROE.

Opportunities for growth

We are well-positioned to capitalise on opportunities in both Namibia and Botswana, including the emerging energy sector.​

A track record of investment success

Our investment philosophy is responsible and responsive to operating conditions. We diversify, never speculate, and continuously monitor and evaluate actual performance. Every investment opportunity is unique, and we take time to understand its features and clearly define and quantify its risk factors.

ROE and ROIE

We track ROE as a measure of quality earnings and aim to achieve a 20% ROE in the longer term. We also consider the return on incremental equity (“ROIE"), where a higher portion of profits are retained to invest in growth opportunities. While this may result in lower dividends in the short term, shareholders will benefit from higher dividends over time.

• In 2024, we increased our shareholding in Paratus Group Holdings to 36.4%, which increases our exposure to the African telecommunications opportunity.
• Peo Finance, our microlending business in Botswana, continues to scale and increased its profit after tax by 248.2% in 2024.
• Our investment in digital transformation ensures our continued relevance to customers.​​