August 14, 2015, 11:13am



Bank Windhoek Holdings Limited release the group's consolidated financial results for the year ended 30 June 2015.
“I am pleased to report on another satisfying financial performance of Bank Windhoek Holdings (BWH) for the year ending 30 June 2015 with a year-on-year increase in profit before tax of 21.5% to N$1,067.1 million (2014: N$878.3 million). Our success can largely be attributed to our loyal and growing customer base and leveraging off our local insight and decision-making to remain locally relevant whilst offering internationally competitive products and services,” said Christo de Vries, Managing Director.

Bank Windhoek Holdings continued to build on its strong historical performance during 2015, with profit after tax growth of 20.5% to N$753.0 million (2014: N$624.9 million) and a three year compound annual growth rate of 23.2%, emphasising a consistent performance.


       Financial highlights:

●Net interest income after loan impairment charges increased by 17.6% to N$1,208.7 million (2014:    N$1,027.8 million) on the back of strong loans and advances growth of 16.7%, together with an improvement in the net interest margin.


●Non-interest income increased by 19.4% to N$811.9 million (2014: N$679.7 million) despite the implementation of zero cash handling fees on certain accounts during the year under review. The increase is mainly due to strong growth in transaction volumes and income for trading activities, cards and electronic channels.

 ●  The group also continues to improve its efficiency and diversification ratios with non-interest income covering 77.9% (2014: 74.3%)of operating expenses and contributing 40.2% (2014: 39.8%) of operating income.

●    Operating expenses increased by 13.9% to N$1,042.2 million compared to the prior year (2014: N$914.6 million).The increase above inflation is mainly due to increased headcount to provide for growth; operational banking expenses mainly due to increased transaction volumes; and ongoing investment in technology. The group continues to invest in existing and new offerings to ensure sustainable improvement in customer experience and financial performance.
●   The growth in operating income of 18.3% exceeds the growth in operating expenses of 13.9%. As a result of this positive operating performance, the cost to income ratio improved from 53.6% to 51.6%.
●   The group's total asset growth of 17.6% is driven by the growth in loans and advances of 16.7%, which is mainly due to growth in overdrafts and commercial mortgage loans. The growth in loans and advances was slightly above the Namibian credit growth allowing the group to maintain its market share.
●   The group remains well capitalised with a total risk-based capital adequacy ratio of 15.8% (2014: 15.8), well above the minimum regulatory requirement of 10%.

"Our focus in the coming year will remain on our customer-centric strategy and culture whereby we continue to differentiate ourselves through our unique service offering and customer experience. We recognise the value of continuous engagement between the group and its employees in achieving superior performance through loyal and satisfied employees. Our investment in digital channels will ensure that we not only keep up with market demands but also to lead with new technology. We will continue to work towards our goals responsibly by adhering to the highest ethical standards. We will also continuously engage our stakeholders as we believe that sustainability comes from a firm focus on profits, our people and the planet", said Christo de Vries.

"The outlook for Bank Windhoek Holdings remains positive and we look forward to build on the successful track record and solid foundation of our group. The group is well-positioned for the new financial year, with a clear plan to deliver future growth and value for all its stakeholders through a well-defined strategy,” de Vries concluded.