WINDHOEK – First National Bank (FNB) Holdings Namibia has perfected the art of offering banking transactions from the bush, and its customers have taken to the idea like wildfire – literally – as is evident in the just released financial statements for the year ended June 2014, which now values the Namibian-listed banking group at N$6.561 billion, as of 3 September 2014.

FNB customers  - the FNB bank is the largest contributor to FNB Holdings’ total revenue - no longer queue up in branches for transactions, with an upsurge in virtually all of FNB’s electronic transactions, and a notable quadruple increase in eWallet volumes, with a transaction volume worth N$1 billion to date, since its inception in October 2012, and with over 237 000 active eWallet users.

The group’s financial statements for the year show N$1.171 billion profit before tax, and profit of N$785 million.

FNB Holdings’ revenue streams for the year comprises of N$1.143 billion from non-interest revenue income, and N$1.138 billion of net interest income. Besides the FNB bank, FNB Holdings owns OUTsurance Insurance, FNB Insurance Brokers, FNB Unit Trusts, FNB Trust Services, and RMB Investments. 

The revenue present other good news too for FNB Holdings’ shareholders on the Namibia Stock Exchange, such as the public who hold 23.52 percent, Government Institutions Pension Fund (GIPF) with its 14.8 percent and the black economic empowerment shareholders who hold 3.28 percent shareholding.

FNB/First Rand holds the 58.4 percent shareholding.

FNB Holdings’ market capitalisation at N$6.561 billion, as of 3 September, 2014, while the market valuation as of June 2014, put the holding company at N$6.197 billion, valuing GIPF’s shares at N$917 million, and BEE partners’ shares at N$204 million, while the public-held stock is at N$1.458 billion.

About 85 percent, the N$929 million lion’s share of the non-interest revenue income, came from net fees and commission income, while foreign exchange chipped in N$77 million or 7 percent, and other income including profits from other associate businesses contributed N$82 million.

“FNB’s top performance is underpinned by the design of relevant business strategies and the effective execution thereof,” said Oscar Capelao, FNB Holdings Chief Financial Officer.

FNB recorded 24 percent overall growth in electronic transactions, with mobile banking volumes leading growth with an increase of 51 percent from the previous financial year, to reach volumes of about N$13 million, followed by an increase in the use of speed point for transactions, which increased by 32 percent over the previous year.

ATM transactions remain the leading transactions for higher volumes, in excess of N$20 million, and still recording a higher growth rate of 23 percent, compared to branch transactions which only increased by 3 percent over the previous year, and with annual volumes below N$20 million.

Indeed it has been a good year for FNB, which recorded a 28.7 percent increase in headline earnings to N$765 million, with a final dividend of 67 cents per share declared, and an ordinary annual dividend distribution of 122 cents a share, which is a 22 percent increase. Growth in gross advances grew by 17.8 percent, thickening the FNB lending book to N$20 billion, with mortgages increasing by 15 percent to about N$9.7 billion, while term loans stand at N$4.4 billion, instalment debts at nearly N$3 billion, while overdrafts are now at slightly over N$1.9 billion and other loans at N$1.3 billion.

Deposits were also stronger even though value in call deposit accounts went down 4 percent to N$4.8 billion. However, volumes in fixed and notice deposits went up 8 percent to N$2.8 billion while savings accounts went up 20 percent to N$559 million.