WINDHOEK – The Bank of Namibia (BoN) yesterday declared dividends of N$294 million to the state revenue fund.
The dividend is from the 2018/2019 financial year.
The dividend sees an increase of N$81.1 million from the N$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.
The bank yesterday also launched its annual report for the year under review.
The report is its premier publication that outlines the governance of the bank, global and domestic economic and financial developments, the banking supervision report and key achievements of the bank in a particular financial year.
According to the report, the financial performance of the bank in the financial year 2018 improved significantly compared to the financial year 2017. Deputy Governor of the Bank of Namibia Ebson Uanguta said: “In regards to the state of the economy, after gaining momentum in 2017, global economic growth is estimated to have weakened slightly in 2018.”
Speaking at the occasion of the launch of the annual report, Special Technical Advisor to the Minister of Finance Penda Ithindi said BoN is accountable to the representatives of the Namibian people and ultimately the Namibian citizens for its operations.
He said the bank’s annual report showed accountability on the part of the central bank – tallying with the declaration of 2019 as a year of accountability, as pronounced by President Hage Geingob.
“The President believes strongly in a philosophy that elevates and recognises accountability and transparency as key ingredients necessary for good governance in order to earn the trust of the people,” Ithindi said.
Despite the prevailing weak economic conditions, the Namibian banking sector’s performance remained sound during 2018.
All banking institutions remained adequately capitalised with enough buffers to cushion against any banking risk, it was heard yesterday.
However, the asset quality measured by non-performing loans (NPLs) of the banking industry relative to total loans deteriorated to 3.6 percent, compared to 2.5 percent a year earlier.
“But this ratio remained within the benchmark of 4.0 percent set by the Bank of Namibia,” Ithindi concluded.
– Additional reporting by Nampa