Standard Bank Namibia records highest-ever profit of N$624m

Standard Bank Namibia (SBN) Holdings Limited has reported its highest-ever profit of N$624 million for the financial year ended 31 December 2022.

This represents a 70.5% increase from the N$366 million recorded in the previous year.

The surge in profit is attributed to an increase in the repo rate and an improved collection strategy, which led to lower credit impairment charges.

SBN Holdings' Chief Executive Officer, Mercia Geises, expressed satisfaction with the company's performance, which was recorded under her watch.

"We have implemented robust collection strategies, which helped in managing the risk in our lending activities," she said.

The bank’s Corporate and Investment Banking (CIB) segment portfolio grew by 35.5% during the period.

SBN Holdings has also achieved another significant milestone by raising N$400 million of funding in the debt capital markets through a green bond issuance. This move will enable the company to accelerate its progress in transitioning to a low carbon economy.

According to its Annual Report for the year ended 31 December 2022, Net interest income (NII) increased by 17.5% to N$1.4 billion, driven by the repo rate steadily rising by 300 basis points (bps) from 3.75% to 6.75% since January 1, 2022. Non-interest revenue (NIR) also increased by 6.1% to N$1.3 billion, driven by 31.8% growth in trading revenue due to increased client flows and volatility in currency markets.

SBN Holdings managed to reduce its credit impairments by 44.2% year-on-year, primarily due to the ongoing implementation of the 2021 non-performing loan reduction strategy and the achievement of related strategic initiatives. During the period, the company generated N$2.73 billion in inflows from clients, paid direct and indirect taxes to government and regulators of N$263.7 million.

However, operating expenses increased by 5.8% to N$1.7 billion, below the average annual inflation of 6.1%.

The group’s Chairman, Herbert Maier, said the listed financial services company is well-positioned, as Namibia emerges to new opportunities, to grow sustainable value for shareholders, customers, and other stakeholders.

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Last modified on Monday, 27 March 2023 18:52

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