Standard Bank Holdings Namibia reported a profit after tax of N$770 million for the period ended 31 December 2023, a 23.3% increase from the previous year’s N$624 million.
The growth is primarily attributed to several factors, including a 24.6% rise in net interest income driven by continued repo rate increases, a 32.2% increase in trading revenue, a 28.5% growth in bancassurance, and higher property-related revenues.
According to the group’s financial results, the financial institution achieved a 160 basis points difference between income growth and cost growth due to strong income growth. The cost-to-income ratio improved to 60.7% (normalised to 57.6%) from 61.7% in 2022.
Meanwhile, the group reports that basic earnings per share rose to 147 cents from 119 cents, while the net asset value per share increased to 970 cents from 912 cents.
The board recommended a final dividend per share of 58 cents, up from 46 cents per ordinary share in 2022. Headline earnings per share also increased from 119 cents to 150.
Gross loans and customer advances (excluding banks) dropped to N$22.4 billion from N$23.0 billion the previous year. The Corporate and Investment Banking (CIB) portfolio saw a 2.4% decrease to N$5.2 billion, primarily due to the early redemption of preference shares.
The Personal & Private Banking (PPB) and Business & Commercial Banking (BCB) portfolios experienced a 3.0% decline, totaling N$17.2 billion. The decline was particularly notable in the home services (4.1%) and other loans and advances (5.4%) categories. However, vehicle and asset finance saw a 3.7% growth attributed to successful campaign runs throughout the year.
While deposits from customers and banks increased significantly by 10.4% to N$30.2 billion, primarily due to a rise in demand deposits, this was offset by a decrease in negotiable certificates of deposits (NCDs). The shift in deposit composition aligns with the company’s strategic objectives.
Debt securities decreased by 11.8%, mainly due to the redemption of the SBKN23 bond worth N$300 million upon maturity during the year. Despite these changes, the company maintained a robust liquidity position within its approved risk tolerance limits.
SBN Holdings Return on Equity (ROE) improved to 15.6% from 13.7%, surpassing the group’s target of a minimum of 15% by 2025. It remained well-capitalised with a total regulatory capital ratio at 20.7% (compared to 17.7% in 2022) and a total tier 1 capital ratio at 18.2% (compared to 15.6% in 2022), both exceeding regulatory minimums.
The bank’s strategic focus areas include enhancing client experience, operational excellence, and driving sustainable growth and value for stakeholders.
The timeline for dividend-related activities includes the last day to trade cum div on May 10, 2024, the first day to trade ex-dividend on 13 May 2024, the record date on 17 May 2024, and the payment date on 31 May 2024.
