FirstRand Namibia reported profit before tax of N$1.497 billion for the six months ended 31 December 2025, as headline earnings rose 15.3% year on year to N$1.066 billion.
The group said the interim performance was underpinned by disciplined balance sheet optimisation and improved margin management in a moderating interest rate environment. Basic headline earnings per share increased to 399.3 cents, while return on equity strengthened to 30.2%.
Despite a 2.6% decline in total assets, profitability improved, with the group noting that earnings growth was driven by operational efficiency and margin expansion rather than balance sheet growth.
“Earnings growth in the period was achieved through structural funding realignment, credit cost normalisation and measured asset expansion, not through cyclical excess or temporary windfall gains,” the group said.
Interest income declined 7.2% to N$2.847 billion. However, net interest income rose 11.2% to N$1.841 billion, lifting the net interest margin to 6.3% from 5.4%. This was largely attributed to a 28.8% reduction in interest expenses following a shift away from higher-cost institutional funding.
Franchise deposits, including current, savings and call accounts, increased 9.4%, while institutional funding declined 26.7%, resulting in overall deposit growth of 4.0%. The improved funding mix strengthened structural margin resilience during the rate-cutting cycle.
“The reduction in wholesale funding and pivot towards lower-cost franchise deposits enhanced margin resilience and reduced reliance on volatile funding sources,” the group said.
Credit quality improved during the period, with impairments declining to N$173 million from N$263 million. The credit loss ratio moderated to 0.4%, while the non-performing loan ratio improved to 4.3% from 6.0%.
Loan growth of 6.6% increased advances to N$41.9 billion, supported mainly by corporate and term lending. The group cautioned that while corporate exposures support relationship-based growth, they require careful monitoring amid softer macroeconomic conditions.
“Credit metrics reflect stabilisation supported by disciplined underwriting and proactive portfolio management,” it said.
Non-interest revenue increased 3.9% to N$1.396 billion, driven by higher transaction volumes and growth in card commissions. However, its contribution to total income eased to 45.6% as net interest income expanded at a faster rate.
Operating expenses rose 10.4% to N$1.536 billion, largely due to a 10.6% increase in staff costs and continued investment in digital platforms, compliance and analytics capabilities. The cost-to-income ratio edged up to 47.4%, remaining below the 50% threshold.
“The group continues to prioritise operational efficiency and disciplined cost management to sustain positive operating leverage,” it said.
Capitalisation remained robust, with a total capital adequacy ratio of 20.3% and a common equity tier 1 (CET1) ratio of 18.2%. An interim dividend of 221.77 cents per share was declared, representing dividend cover of 1.8 times, at the upper end of the group’s stated target range.
FirstRand Namibia said while the first-half performance benefited from funding optimisation and credit normalisation, growth in the second half of the financial year is expected to moderate as the effects of rate cuts filter through and base effects normalise.
FirstRand Namibia is the holding company of FNB Namibia, RMB Namibia, WesBank Namibia, Ashburton Investments Namibia, Pointbreak Wealth Management and FNB Short-Term Insurance.
