BUSINESS MODEL

We have long-standing and new customers across all segments in Namibia and Botswana

We contract with a range of reliable suppliers

Customer loyalty: Bank Windhoek is the largest locally owned bank and the second largest commercial bank in Namibia

Bank Windhoek has a 33.8% market share and Bank Gaborone a 7.4% market share in loans and advances

The Foundation and Changemaker initiatives contribute to communities in need

The Capricorn brand is recognised in the region

• We are increasing our investment in social and relationship capital as we support stakeholders in need

Outcomes:

More people are banking and insured

We make positive community impacts through the Foundation and Changemakers

The number of transactions increased

Our Net Promoter Score decreased to 39%

Bank Windhoek received more awards

• A wider variety of products and services will be linked to the Capricorn Group brand and underlying entities
• Products and services will be simplified and easy to access
• Less waiting time for clients and better customer experiences
• Offerings will be more competitive and cost effective
• New clients in new markets/segments
• New partnerships across banking and digital
• Shifts in priorities and CSI based on stakeholder feedback and responses

Input:

2,019 permanent employees

N$3.9 million training investment to upskill employees

• We anticipate potential scarcity in digital and data analysis skills in the short to medium term

Outcomes:

Employee turnover annualised at 4%

Vacancies have been frozen

Absenteeism at 37.9% (due to COVID-19)

46% fully engaged employees (Mirror survey)

9,496 employees received training

• More jobs created
• Higher skills levels in data and digital
• One team culture across subsidiaries
• More diversified, inclusive and equity-representative teams
• Improved workplace based on brand, communication audits and ethics survey

Input:

Over 220 years’ collective board member experience

We have a Risk Culture and 14 principal risks, each with a risk owner

We drive ethics awareness and behaviour through the Group Code of Ethics and Conduct Policy, The Capricorn Way and Suppliers Code of Conduct

We launched a distribution transformation programme

• We are increasing our investment in digital transformation over the next few years in line with our strategic choices

Outcomes:

New capabilities launched via bank and MyCapricorn apps

NPLs mitigated through effective and proactive processes

Limited losses due to financial crime

• More client data will be available for analysis and insights
• Distribution transformation programme will create a bank for the future
• King IV™ will be fully embedded in all subsidiaries

Input:

Retained income of N$5.7 billion (2020: N$5.5 billion)

Total assets of N$56.0 billion

Total loans and advances of N$40.8 billion

Total deposits of N$40.2 billion

CAM AUM of N$31.8 billion

• Liquidity and funding will remain constrained in the short to medium term, which limits the capital available for investment in growth projects

Outcomes:

Value created for all stakeholders (see value added statement) and dividends paid

Cost-to-income ratio up to 53.5%

Return on equity of 13.5% increased

Capricorn Group remains well capitalised

Profit from continuing operations increased by 1.2%

Business development plans are progressing

• More diversified income streams with less exposure to interest rates
• Scale achieved in Botswana will have positive cost impact based on transaction volumes
• Strong growth from new ventures making a material contribution to operating profit
• Available and optimised capital and funding

Input:

12 branches/agencies, 17 ATMs, (including NCRS), 8 NCR ATMs, 384 merchants and 635 POS devices

24-hour customer contact centre

IT systems and business continuity facilities

Digital banking, apps and other platforms

Outcomes:

Capricorn Group’s footprint increased

Lower levels of cash in branches as more customers use digital banking

• Expanded digital footprint and capabilitie
• Scalable digital offerings/platforms

Input:

Environmental and Social Management System

Water, energy and paper

• Climate impacts from physical and transition risks and infrastructure quality might become a business constraint in the medium to long term

Outcomes:

Green Bond issuance of N$66 million and Sustainability Bond issuance of N$227 million since 2018

Solar Photovoltaic (PV): N$256 million

Sustainable Agriculture: N$10.75 million

• Operational efficiency will optimise resource use
• Bank Windhoek will remain a leader in sustainable financing