Nedbank Namibia recorded a total income of N$1.2 billion for the year ended 31 December 2022, representing an increase of 13% from the previous financial year. Profit after tax increased by 35% to N$275 million.
These figures were confirmed yesterday by the Nedbank Namibia managing director Martha Murorua. She added Nedbank Namibia delivered strong headline earnings growth of 35% for the financial year under review, driven by increased interest rates as well as growth in the group’s non-interest income, combined with good cost management.
“The group continued to make good progress on its strategic value drivers of growth, productivity and management of risk and capital. Growth trends across net interest income (+7%), non-interest revenue (+28%) and client growth (+8%) improved from the prior years,” said Murorua.
She noted the increase in net interest income was driven by increased interest rates as well as by maintaining a strong balance sheet capital plus an improved liquidity position. Solid growth from non-interest revenue was driven by continued recovery in client activity and increased client demand.
In yesterday’s virtual media conference, the MD said operating expenses of which 48% includes staff costs, were in line with the average inflation rate for the year, adding this reflects a solid operating performance, with a particular focus on efficiencies.
Furthermore, Nedbank expects the lending rate to peak at 11% in the second half of 2023.
“A continuation of the good strategic and operational delivery experienced in 2022 should support strong growth for the 2023 financial year. Our clients continue to embrace digital transactions and we recorded 46% digitally active customers at the end of December.
The NNH (NedNamibia Holdings) Group continues to invest in new technology and processes in order to become more agile and efficient and to better respond to our customer needs,” said Murorua.
She added Nedbank is determined to keep charging relatively low fees and will continue encouraging customers to use digital platforms.
Announcing the group results yesterday, Terence Sibiya, Nedbank Group Managing Executive said: “I am incredibly pleased that the NAR (Nedbank African Regions) business delivered a good set of results driven by an improved performance from SADC operations and strong earnings from Ecobank Transnational Incorporated (ETI) associate investment, partially offset by providing for the estimated impact of the Ghanaian sovereign debt restructure programme that was initiated in December 2022.”
He further shared some key
highlights of the performance; headline earnings increased by 64% to R975 million from R594 million in 2021 and return on equity improved to 13.8% (9.3% in 2021). The cost-to-income ratio decreased from 73.7% in 2021 to 67.3%: cost to income ratio of the SADC operations also improved to 77.7% (2021: 84.9%).
Sibiya added the group is expected to record a high dividend payout to its shareholders and that upon releasing the results, the market responded very well. -mndjavera@nepc.com.na