Namibia’s banking sector recorded 10% growth in real value added in the second quarter of 2026, reversing a 4.1% contraction recorded during the corresponding period last year, as deposits increased to N$174 billion.
According to the Namibia Statistics Agency’s (NSA) second-quarter GDP report, total banking deposits increased from N$156 billion in the second quarter of 2025 to N$174 billion, an increase of about N$18 billion.
“The banking subsector recorded a growth of 10.0% in real value added during the second quarter of 2026, in comparison to 4.1% decline recorded in the same period of 2025,” the NSA said.
The banking sector’s recovery was the main driver of growth in the broader financial services sector, which expanded by 5.5% in real value added, compared with a 0.7% contraction a year earlier.
The performance indicates a marked turnaround for banks from the contraction recorded in the corresponding quarter of 2025, alongside growth in the sector’s deposit base.
Insurance activities also recorded positive growth of 1.9%, compared with 2.2% in the second quarter of 2025.
The NSA attributed the insurance sector’s performance mainly to increased gross premiums from life insurance and growth in medical aid membership.
Meanwhile, real estate and professional services expanded by 5.2%, compared with growth of just 0.3% during the corresponding period last year.
Real estate activities grew by 5.3%, accelerating from 0.9%, while professional services expanded by 4.4%, reversing a 5.1% contraction recorded a year earlier.
“The performance of the sector is ascribed to both the real estate and professional services activities subsectors, which recorded growths of 5.3% and 4.4% in real value added, compared to a growth of 0.9% and a decline of 5.1% posted in the corresponding quarter of 2025, respectively,” the NSA said.
