Windhoek
The localisation of Standard Bank Namibia is on track with the bank pushing to conclude the allocation of shares to staff members by the end of this year’s first quarter. Standard Bank Namibia Holdings completed the allocation of the first tranche of shares to qualifying bank staff during the second quarter of 2015. The second tranche allocation process commenced on the fourth quarter of 2015 and will be finalised in [first quarter of] 2016, the bank said in announcing its financial results this week for the year ended December 31, 2015. It has been a very good banking year for Standard Bank Namibia Holdings, turning in a 20 percent increase in total income for the year, amounting to over N$2 billion, up from N$1,7 billion recorded in 2014.
Return on average assets increased by 26 percent to 2.4 percent from 1.91 percent recorded the previous year. Net interest margin also went up 8 percent from 5.02 percent to the current 5.44 percent. Standard Bank Namibia Holdings’ total assets increased 10 percent to nearly N$24 billion from N$22 billion in 2014. Profit after tax increased 45 percent to N$525 million from N$362 million. This is while it kept it operating expenses at bay, with an increase of 13 percent, which is N$1,2 billion compared to the N$1,04 billion in operating expenses for 2014. The bank says the increase in total income and operating expenses reflect “a delicate balance between cost management and the need for continued investment to be made in our systems and infrastructure to remain relevant to our customers and introduce innovation to our service offering.”
The bank’s credit loss ratio decreased 33 percent from 0.76 percent in 2014 to the current 0.51 percent. “This is partly due to the continued growth in the economy, but also related to our robust and stringent application process, which protects both the customer and our bank,” read the bank’s financial statement. Going forward, the bank says the outlook for 2016 “is uncertain, given the significant fluctuations in the value of the Namibian dollar and its uncertain impact on inflation levels in 2016.”
“The expected increase in interest rates in 2016 adds to these uncertainties, compounded by the continued low levels of commodity prices and the drought experienced in the last three years. However, the Namibian economy has, to a large extent, remained resilient during these challenging times, growing at rates higher than other countries on the sub-continent,” the bank said.