08 Sep 2016 16:40pm
WINDHOEK, 08 SEP (NAMPA) - First National Bank (FNB) Namibia has recorded an increase in profits of N.dollars 1 217 million compared to N.dollars 998.6 million the previous year.
The profit increased by 21 per cent, said FNB Chief Financial Officer Oscar Capelao while presenting the bank's financial results for the year ended 30 June 2016 here on Thursday.
He said the headline earnings adjusted for the sale of the Talas building in Windhoek has increased by 15,7 per cent to N.dollars 1 136 million, while the earnings per share increased to 459.7 cents compared to 377.5 cents the previous year.
Normalised earnings - adjusted for headline earnings adjustments, non-operational items and regulatory anomalies - we believe are more accurate reflection of performance. Normalised profits for the year increased by 18,2 per cent to N.dollars 1 119 million, he noted.
Capelao said that the banking group dominated the contribution to the local group's earning, with net interest income growing by 13,8 per cent to N.dollars 1 653. 6 million compared to N.dollars 1 452.8 million.
The margins have not widened to the extent experienced previously when interest rates increased, mostly due to the relative increase in cost of funds during the cycle, he noted.
The financial officer said the net fee and commission income increased by 13.5 per cent, impacted by the Bank of Namibia's directive exempting fees being charged on cash deposits made by individuals and small and medium enterprises which came into effect in April 2015.
He noted that this item is also impacted by the Namibia Financial Institutions Supervisory Authority's directive on policy fees for FNB Insurance Brokers.
Meanwhile, FNB's Chief Executive Officer Sarel van Zyl said FNB has positioned all its operating entities to make the most of limited growth opportunities and produced another set of excellent results in an increasingly difficult operating environment.
We thank all our stakeholders, including the shareholders, staff, customers and the government for making these results possible so that we, in turn, can be partners to increased wealth for our country and its people, he said.