Nedbank Namibia reported a 54% surge in profit after tax to N$460 million for the year ended December 2023 driven by client growth, expense management, and digital initiatives.
“After fair-value adjustments, our headline earnings have increased by 29% to N$383 million from N$298 million. This growth is driven by endowment benefits, client growth, and effective expense management,” Nedbank Namibia, Managing Director Martha Murorua said.
She emphasised the significance of Nedbank’s progress in building its Namibian franchise over the past 50 years.
Murorua expressed satisfaction with the improved financial performance, citing strong client activity, fair value gains, and enhanced asset quality leading to a 34% reduction in impairments.
“In the face of challenges, including the impact of COVID-19, Nedbank Namibia has demonstrated resilience and delivered strong financial performance across key metrics,” Murorua affirmed.
Reflecting on the pandemic’s initial impact on the banking sector, Murorua noted, “When COVID hit us in 2020, our profits took a deep dive. However, we have not only recovered but exceeded pre-COVID levels. Our profits before COVID stood at N$350 million, and we now stand at N$383 million.”
Murorua highlighted the pivotal role of non-interest revenue, which grew by 8% at the bank level, driven by a robust digital drive that increased digital penetration by 64% compared to 45% in 2022.
Additionally, client numbers grew by 9% across various segments.
“Digital innovation remains a cornerstone of our strategy. We have seen significant growth in digital and transactional volumes, with our PocketPos targeting SMEs and the informal sector growing by 177%,” Murorua explained.
The MD noted that the rollout of transactional devices contributed to a 73% increase in transaction volumes and a 70% increase in transaction value. However, overall non-interest revenue contracted by 4.2% due to market conduct principles applied to unsecured loan products.
