Bank Gaborone boosts Capricon Group

SHARE   |   Wednesday, 23 September 2020   |   By Bakang Tiro
Sybrand Coetzee Sybrand Coetzee

Bank Gaborone – a wholly-owned subsidiary of Capricon Group – has contributed significantly to the financial performance of the Group boosting the revenue in key aspects of Group business.

Capricorn Group is a diversified holding company operating in Botswana, Namibia and Zambia.

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The diversified Group on Friday released 2020 Annual Results and launched its Integrated Report. The Group Financial Director Jaco Esterhuyse while giving financial overview said both Bank Gaborone and Bank Windhoek were instrumental in boosting the Group’s income amid Covid-19 pandemic.

Esterhuyse buttressed that Covid-19 has had a severe impact on the Group’s performance. He indicated that Bank Gaborone’s non-performing loans increased by 15.3 percent to P291.2 million as compared to P256.6 million posted in 2019; adding that this shows the resilience of the bank.

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Bank Windhoek NPLs went up by 20.5 percent to N$1.5 billion as opposed to N$1.2 billion posted in 2019. Overall non-performing loans increased by 19 percent to reach N$1.9 billion for the Group in 2020.

“Bank Gaborone’s loan book increased at a higher rate than funding, resulting in net interest income increasing by 31.1% to P56.7 million. The bank has done very well this year as it has managed to increase its margin from 4.1% to 4.6% to boost its non-interest income,” he said.

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He added that the Group has done well as it managed to increase its non-interest income by 11.7% to N$11.7 billion.

Also, travel and accommodation decreased by 28.1% due to closure of borders. He said the Group remains well capitalized; noting that the business did well until the start of Covid-19.

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Group CEO Thinus Prinsloo said the 2020 financial year has been the most interesting ever for the Group. He said the significant reduction of borrowing interest rates across the region extended relief to customers but also impacted negatively on the interest margins of the Group’s affiliated banks.

Prinsloo also said the sluggish economic growth in Namibia also affect business in the country. Also, Group’s gross loans and advances recorded a significant growth reaching N$ 41.1 billion. Bank Gaborone funding increased by 5.2% to P5.2 billion while Group results contracted by 2.2%.

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“Liquidity remained strong throughout the pandemic. Our liquid assets increased by N$1.77 billion (16.2%) year-on-year Group operating expenses were reduced to 3.4%,” said Esterhuyse.



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