Capricorn share price rises 30% despite profit decline

Capricorn Group’s share price rose by nearly 30% during the year ended 30 June 2026, lifting the financial services group’s market capitalisation by about N$4 billion despite a decline in annual profit.

The group’s share price on the Namibian Securities (NSX) Exchange increased from N$21.64 at the end of June 2025 to N$28.12 by 30 June 2026, according to the group’s annual report.

The increase lifted Capricorn’s market capitalisation from about N$11 billion to N$15 billion.

The stronger share price came as the group reported profit after tax of N$1.87 billion, down 6.4% from the previous year.

The group says its five-year compound annual growth rate in profit after tax stood at 13.7%, despite the decline recorded in the latest financial year.

Capricorn’s higher share price meant investors were paying more for each share relative to the group’s earnings.

The group’s earnings per share, which shows how much of the company’s profit is attributable to each share, fell from 367.3 cents to 343.7 cents.

However, the price investors were paying for those earnings increased.

Capricorn’s price-to-earnings ratio rose from 5.9 times to 8.2 times.

The group’s price-to-book ratio, which compares its market value with the value of its net assets, also increased from 1.0 times to 1.2 times.

The stronger share price came despite the lower profit, which Capricorn attributed in part to the comparison with the previous year’s strong performance.

Group financial director Johan Maass says the 2026 results should be considered against the strong performance recorded in the previous year.

“Headline results reflect lower profits compared to 2025.

However, when assessed on a standalone basis without direct comparison to the prior year’s exceptional performance, the underlying numbers are solid and respectable,” Maass says.

He added that market sentiment reflected confidence in the Group’s fundamentals. Capricorn Group closed the year with a stronger balance sheet, with capital and liquidity ratios comfortably above regulatory requirements. Liquid assets increased by 18.9% to N$22.1 billion, while deposits grew by 6.3% to N$56.2 billion.

The improved loan-to-funding ratio and stronger capital adequacy position give the group greater flexibility to navigate uncertainty, fund growth opportunities responsibly and support the potential for higher profits in future periods.

The group’s asset management operations were among the areas that recorded stronger growth during the year.

Capricorn Asset Management increased its profit after tax by 33.3%, while assets under management increased by 17.5% to N$67 billion.

The group ended the financial year with total assets of N$75.4 billion and a total risk-based capital adequacy ratio of 19.4%.

For shareholders, Capricorn kept its ordinary dividend unchanged at 135 cents per share, made up of a 58-cent interim dividend and a 77-cent final dividend.

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