Standard Bank Namibia records satisfactory profit

30 Mar 2015 20:10pm
WINDHOEK, 30 MAR (NAMPA) - Standard Bank Namibia Holdings (SBNH) in 2014 increased profit before tax by 23 per cent (N.dollars 523 million) and profit after tax by 13 per cent (N.dollars 362 million).
The bank recorded total income of N.dollars 1,68 billion during the same year.
It announced in a media statement on Monday that non-interest revenue grew by 11 per cent during the year with net fee and commission revenue up 23 per cent, mainly as a result of increased transaction volumes.
Trading revenue increased by six per cent, while other revenue was 22 per cent lower than in the prior year.
SBNH's loans and advances have increased by 19 per cent.
It stated that the net interest income increased by 29 per cent, mainly as a result of growth in interest-earning assets, funding mix and higher margins.
“Margins improved due to repricing new business in the mortgage, business and personal term lending books to better reflect the risk and costs of anticipated regulatory changes, together with the increase in higher-margin unsecured lending,” said SBNH.
The group return on equity (ROE) also decreased to 17.67 per cent from 18.47 per cent in 2013, while income grew by 20 per cent, which is N.dollars 280 million.
The statement indicated that the bank's expenses grew by 15 per cent (N.dollars 134 million), reflecting the continued investment made in systems and infrastructure.
“The bank’s performance has been under pressure due to a high cost base, high levels of impairments and other challenges resulting from the implementation of the new core banking system,” it said.
The bank’s plan for the 2014 financial year, with the theme “Focus on Basics”, had a key objective of building a foundation for sustained growth and success in the years from 2015. From the results at the end of the year, it is clear that the key areas identified as focus areas for 2014 had been correctly identified and the actions appropriately executed, it said.
Meanwhile, the bank indicated that total loans and advances were up 19 per cent, and contributing to the increase in loans and advances was a 9 per cent increase in mortgage loans.
Other term loans increased by 37 per cent, mainly due to the increased term loans to corporates.
“Instalment sale and finance leases increased by 19 per cent due to growth in the passenger vehicle market,” it stated.
Deposit and current accounts increased by 10 per cent to N.dollars 17.5 billion (2013: N.dollars 15.9 billion) through a focus on deposits and current accounts, higher foreign currency balances and higher client working capital requirements.
Trading assets decreased substantially due to decreased repurchase agreement trading positions.