Capricorn upbeat on Cavmont Bank turnaround
Featured

08 March 2019
Author  
Capricorn Investment Group (CIG) is placing its bet on new management at struggling Zambian unit, Cavmont Bank to implement a successful turnaround.
This comes as the Namibian company last year replaced the entire top management of the Zambian bank as part of a turnaround plan.
“Apart from appointing a new Interim MD last year, a number of key positions on the executive management team of Cavmont Bank have been filled in the past few months including the Chief Financial Officer, Head of Credit, Head of HR and Chief Operating Officer. The Group has confidence in the executive management team to execute on the Bank’s turnaround strategy,” Marlize Horn, Group Executive: Brand & Corporate Affairs at Capricorn Investment Group said.
Horn said the financial services group was taking a long-term view of its struggling Zambian unit, after the bank reported a N$15.9 million loss for the six months ended December 2018.
“The Group is taking a long-term view on the future sustainability of Cavmont Bank and support the Cavmont Bank board and executive management in the execution of their turnaround strategy. The Group is confident that the executive management of Cavmont Bank, supported by their Board and Capricorn Group, is addressing the key issues through a well-defined turnaround strategy,” she said.
With a population of 15 million people, Capricorn is reported to be excited about the growth potential of Cavmont Bank, backed by its successful banking experience in Namibia and Botswana.
“Cavmont Bank has the 8th largest loan book in the Zambian market as at 31 December 2018 (2.6 percent market share). In terms of customer deposits, the Bank has a 1.3 percent market share. The financial services sector in Zambia is very competitive with non-traditional banks entering the market with innovative solutions to banking customers,” Horn said. 
With assets of over N$2.5 billion, Cavmont Bank is the smallest among the groups banking units made up of its flagship Namibian unit, Bank Windhoek and Bank Gaborone in Botswana.
CIG is a 97.9 shareholder in Capricorn Capital Holdings Zambia PLC, which owns 100 percent of Cavmont Bank Ltd (CB) , an interest it acquired in 2017 for close to N$430 million.
Cavmont Bank Limited was established in 2004, following a merger between Cavmont Merchant Bank Limited and New Capital Bank Plc, and has a network of 17 branches and 3 agencies in 6 of the 10 provinces in Zambia.
CIG has interests in banking, insurance, asset management and microfinance in Namibia, Botswana and Zambia.
Bank Windhoek – Namibia's largest locally owned bank and the second largest commercial bank in the country.
Capricorn Investment Group holds a 65 percent stake in Bank Gaborone which has been in operation for the past 12 years.
The roots of the Capricorn Group dates back to 36 years ago when a group of Namibian entrepreneurs identified the need for a Namibian bank.
CIG is a diversified financial services group and its operations are primarily focused on banking, wealth and asset management insurance, and microfinance.
In the six months ended December 2018, CIG’s operating profit increased by 11.5 percent to N$674.3 million and group profit before tax increased by 8.5 percent to N$714.2 million.
 
 
 
 
349 Views

WINDHOEK OBSERVER

The Windhoek Observer is an English-language weekly newspaper, published in Namibia by Paragon Investment Holding. It is the country's oldest and largest circulating weekly.

Contact Us

Windhoek Observer House
c/o John Meinert & Rossini Street
Windhoek West
Namibia
Tel: +264 61 411 800
Fax: +264 61 226 098
www.observer.com.na