11 Jun 2014 14:00pm
WINDHOEK, 11 JUN (NAMPA) The Development Bank of Namibia (DBN) approved loans to the amount of N.dollars 840.1 million during 2013 compared to N.dollars 519.1 million approved in 2012.
DBN Chief Executive Officer (CEO) Martin Inkumbi announced this during the launch of the bank's 2013 Annual Report in the capital on Wednesday.
He added that about 93 per cent was allocated to projects involving previously disadvantaged Namibians.
Inkumbi noted that the effective Black Economic Empowerment (BEE) component was N.dollars 357 million and effective component allocations to women amounted to N.dollars 95.7 million.
He stressed that the bank's activities had an impact on 7 871 jobs during 2013, of which 1 619 were new jobs and 3 084 were temporary jobs.
This brings the total number of jobs impacted by the bank since its inception to 49 045, he said.
He noted that the projects at national level, which include corporate entities that have branches in other regions, had the highest share of approvals at N.dollars 250.3 million, while the Khomas Region followed at N.dollars 135.6 million.
The Erongo Region featured in third position with N.dollars 135.0 million, followed by Otjozondjupa Region with N.dollars 103.8 million and others with lower approvals.
Inkumbi said the majority of approvals, 64.7 per cent, were made in the tertiary sector, followed by 35.1 per cent in the secondary sector.
The key sectors of transport and manufacturing received 33.8 per cent and 13.1 per cent respectively, while the tourism sector received 7.2 per cent of the loan approvals during the period, he said.
The CEO said the bank continued to support local entrepreneurs through tender-based financing, and a total of N.dollars 149.1 million was approved in contract-based financing (bridging finance).
These facilities supported tenders worth N.dollars 834.4 million.
Inkumbi added that the banks total assets grew by 17 per cent to N.dollars 2,376 billion, on the back of further capitalisation by the shareholder and profits during 2013.
Loans and advances increased by 24 per cent to N.dollars 1,727 billion during the period, while equity investments grew by 84 per cent to N.dollars 130.4 million.
Inkumbi noted that the banks net interest income grew by 25 per cent to N.dollars 165.3 million for the period, in line with the 24 per cent growth in the banks loan book.