FNB Namibia Return on Equity decrease to 23.3%
March 13, 2018, 5:01pm
First National Bank Namibia’s interim results indicates a decline of Returns on Equity to 23.3% in 1HFY18 compared to PSG Namibia’s forecasted ROE for FY18 at 22.7%.
The financials also show a decrease in the return on Assets to 2.8% in 1HFY18 in line with forecasts.
Credit loss and non-performing loan ratios deteriorated as well in line with forecasts while growth in Net Interest income slowed to 2.2% compared to PSG’s forecast of 9.1% for FY18.
“The expectation has been and remains for a slower FY18 and this trend is confirmed in the bottom line of 1HFY18 figures,” says PSG.
The firm says income surprised on the upside in certain instances (non-interest revenue growing by 12.8% vs PSG forecast of 6.4% due to an increase in active accounts), however, the upside surprise in expenditure was also larger (opex growth of 20.5% vs PSG forecast of 8.2%).