FirstRand Namibia has delivered strong financial results for the year ended 30 June 2025, showing the company is managing well despite economic challenges. The group’s profit after tax grew by 12.2%, reaching N$1.9 billion, up from N$1.7 billion in 2024.
Chief financial officer of FirstRand Namibia Lizette Smit said return on equity (ROE) improved to 28.6%, while the net asset value climbed to 2 676 cents per share, up from 2 329 cents. In a vote of confidence, the board declared a dividend of 476.34 cents per share, reflecting a significant 34.7% year-on-year increase.
This growth came from more customers using the bank’s services, higher transaction volumes, and careful control of costs.
“We are pleased with progress on the key drivers of shareholder value creation. Our performance reflects disciplined financial resource management, strong customer growth, and effective cost containment. We are well-positioned to respond to emerging risks and leverage strategic opportunities,” she said.
FirstRand Namibia reported total advances growth of 3.9%, largely supported by corporate credit demand, which rose by 10.6%. Household credit demand also increased, though growth in mortgage credit remained subdued.
The group’s investment banking arm, RMB, reported strong advances growth of 16.2%, focusing on sectors with above-cycle growth potential. Meanwhile, FNB Namibia’s advances growth was constrained by regulatory write-offs, increased repayments, and slower market momentum.
Deposits increased by 2.1%, with FNB Namibia maintaining its leadership as the largest custodian of retail and commercial deposits in the country. This was supported by competitive pricing strategies, enhanced transactional products, and active customer acquisition efforts.
“The group reported a 23.9% increase in impairment charges, rising to N$527 million for the year. This increase was driven by higher regulatory-driven write-offs and refined write-off policies, partially offset by improved recoveries. The credit loss ratio (CLR) rose modestly to 1.3%, up from 1.1% in 2024,” she said. Looking ahead, the group anticipates a lower interest rate environment will ease customer strain and support a moderation in impairment charges.
On the cost front, operating expenses rose by just 5.5% to N$2.8 billion, with the cost-to-income ratio improving to 46.2%, underscoring a continued focus on operational efficiency and productivity.
“We operate in a competitive and evolving financial sector. Our success will hinge on our ability to manage risk prudently, deploy capital effectively, and harness technology to deliver customer value,” added Smit.