FirstRand Namibia Limited (FirstRand) reported a 22.7% year-on-year growth in after-tax profits for the financial year ended 30 June 2023 of N$1.56 billion.
The profit growth was primarily driven by an increase in net interest income of 22.4% year-on-year (y/y) to N$2.7 billion.
FirstRand’s headline earnings grew by 21.3% y/y to 587.9 cps while non-interest revenue grew by 11.4% y/y to N$2.21 billion.
In the period under review, ROE rose from 21.4% in FY22 to 25.5% in FY23, while return on equity (ROA) remained relatively the same at 2.8% in FY23 from 2.7% in the comparable period.
The group declared a final dividend of 368.14 cps, bringing the total ordinary dividends for the year to 577.84 cps.
During the period under review, inflation of 5.3% was reported which is rising slower than the operating costs which have risen by 8.5% y/y to N$2.43 billion.
The group’s net advances grew by 10.9% y/y or N$3.49 billion to N$35.4 billion.
Furthermore, of the N$111 billion in advances in circulation in the Namibian banking sector, FirstRand holds 31% or N$344 billion in advances, with N$15 billion in total assets under management according to IJG.
FirstRand holds a 34% share of the N$125 billion Namibian deposit market.
In the same period, the group’s transaction volumes went up by 12% to 175 million from 157 million in 2022.
The Namibian Stock Exchange listed company paid out a total of N$6.1 billion in new loans compared to N$5.8 billion in 2022.
FirstRand Namibia’s portfolio of financial services businesses includes FNB Namibia, RMB Namibia, WesBank Namibia, Ashburton Investments Namibia, and PointBreak Wealth Management.