FirstRand Namibia has rewarded shareholders with N$745 million after declaring a final dividend of 319.84 cents for the year ended 30 June 2022.
Namibian shareholders will pocket 40% of the amount, which equals to N$298 million in the payouts which are due at the end of October this year.
FirstRand Namibia, which owns First National Bank of Namibia Limited, WesBank, RMB Namibia, FNB Insurance Brokers, OUTsurance and FNB Unit Trusts, recorded earnings growth of 24% in the period under review with headline earnings coming in at N$1.2 billion.
The group’s pre-provision operating profit increased by 13.5% to N$1.96 billion, while return on equity (ROE) increased to 21.4%, which is significant as this measures a company’s net income divided by its shareholders’ equity.
ROE is a gauge of a corporation’s profitability and how efficiently it generates those profits. The higher the ROE, the better a company is at converting its equity financing into profits.
The group’s credit extension to clients currently stands at N$32 billion and the value of FirstRand Namibia as a company on the Namibia Stock Exchange (NSX) is N$8 billion.
Meanwhile, the group’s strategy to do what matters locally delivered normalised earnings of N$1.86 billion, exceeding by 6.7%, peak 2016 earnings.
Additionally, economic profit (NIACC) increased over the year, and thus Namibian shareholders will receive nearly 40% of dividends amounting to N$298m into local coffers.
The value creation for shareholders is testament to the quality of the group’s operating businesses, FNB, RMB, WesBank Ashburton and PointBreak.
The group’s franchise businesses showed growth in normalised pre-tax profits (PBT), driven by operational resilience and successful execution on their respective growth plans.
Operating profits before provisions increased by 6.2%, exceeding FNB’s pre-pandemic levels.
Meanwhile, RMB profit before tax grew by 5.5%, driven by a robust underlying operational performance across its portfolio, with solid contributions from investment banking, markets and private equity.
Commenting on the strong results, FirstRand Namibia Group CEO, Conrad Dempsey attributed the group’s success to its clients.
“The talent and commitment from everyone to do what matters, to customers, communities and the nation, is the driver of positive and inspirational results. Our clients are the reason we exist today, and the clients and investors of our future, will be the beneficiaries and partners to Namibia’s growth, “Dempsey said.
FirstRand Namibia Group Chief Financial Officer, Oscar Capelao, said, “the group’s results are a feature of strong relationships with customers and investors, and the ability to embrace change to enhance inclusion and growth digitally. Ongoing investment locally into systems, tech solutions and the development of local expertise will continue to feature as a driver of solid results.”
FirstRand Namibia, as a holding group, continues to play a valuable role enabling the customer-facing businesses to deliver on their strategies, with Group Treasury’s resource management strategies significantly adding to shareholder value.
“Coming out of the pandemic, the group offers a strong balance sheet for investor consideration and remains conservatively provided. Accreted capital enabled the group to reward shareholders with an attractive yield, especially valuable in an inflationary environment. FirstRand Namibia has ample financial resources to support our future growth ambitions, driven by its commitment to help build a globally competitive Namibia,” the company said.
