BoN declares N.dollars 294.2 million dividend to State

02 Apr 2019 14:30pm
WINDHOEK, 02 APR (NAMPA) – The Bank of Namibia (BoN) on Tuesday declared a dividend of N.dollars 294.2 million to the State Revenue Fund for the 2018/19 financial year.
The dividend sees an increase of N.dollars 81.1 million from the N.dollars 213.1 dividend declared to the State for the 2017/18 financial year.
BoN Deputy Governor, Ebson Uanguta handed over the dividend to the Ministry of Finance during the launch of the bank's 2018 Annual Financial Report.
Uanguta said the N.dollars 81.1 million dividend increase was attributed to an increase in the Bank’s reserves balance and favourable interest and exchange rates.
He further explained that the Namibian banking sector’s performance remained sound during 2018, with all institutions remaining adequately capitalised, with enough support against any banking risks.
“The banking sector liquidity situation was fair and stabilised due to the availability of more funds in the system by virtue of government payments and regulatory changes on domestic asset requirements for institutional investors,” he said.
Due to tough economic conditions, however, asset quality measured by non-performing loans of the banking industry relative to total loans deteriorated to 3,6 per cent, compared to 2,5 per cent a year earlier.
“However, this ratio remained within the benchmark of four per cent,” Uanguta said.