Trustco Group says it registered a N$578.6 million profit before tax for the six months ended 28 February 2022, up from a loss before tax of N$291.4 million in the corresponding period.
The group’s revenue for the period decreased by 76% to N$51.6 million from N$213.4 million in the corresponding period.
Trustco recorded a N$513.2 million gain on deemed disposal and reacquisition of subsidiaries carried out as part of an accounting reclassification of the business, with N$103.5 million coming in from investment income and other income.
“Following a strategic review of Trustco’s investment portfolios, the management and the board of the company determined that the company (effective from 1 September 2021) meets the criteria to be classified as an Investment Entity in terms of IFRS. As a result of this reclassification, the group recognises investments in its investment portfolios as held at fair value through profit and loss. This change in accounting policy further triggered a deemed disposal and reacquisition of the company’s investment portfolios at fair value on the date of the change, which resulted in a gain that was recognised through profit and loss,” the company said.
The listed group also revealed that it was currently engaging the Bank of Namibia regarding a N$1.1 billion capitalization of its banking unit.
“The group recently approached its primary banking regulator to inject capital of up to NAD 1.1 billion into the commercial bank. At the time of this report, the matter was under deliberation by the Bank, the Bank of Namibia and Trustco Group.”
The Namibia-headquartered company has operations in insurance and investments, resources, and banking and finance.
