More Bank Windhoek market cap

Investors appear to be making hay while the sun shines at Bank Windhoek Holdings. This week, trade in the shares of Bank Windhoek has seen its market capitalisation rise considerably, displacing  FNB Namibia Holdings, the most profitable banking institution in the country. While all fingers may be pointed to the Government Institutions Pension Fund of Namibia, Conville Brits, Financial and Investment Manager at the country’s biggest pension fund could not say whether the movement was as a result of dealings executed by the GIPF.

He said, “We are not in a position to say whether we have led to the increased market capitalisation of Bank Windhoek. We do not buy directly and we have appointed asset managers to effect transactions on our behalf.” The share price gained N$2 to close off at N$15 at the end of trading on Tuesday 25 November 2014. Bank Windhoek’s market capitalisation now stands at N$7.6 billion in contrast to that of FNB Namibia, which currently equates to N$6.8 billion. Bank Windhoek referred all queries to PSG Konsult Namibia, its broking firm. Contacted for comment, PSG Konsult Head of Research JD van Wyk could not shed much light on the developments at hand.Bank Windhoek made quite a splash following its Initial Public Offering on the Namibian Stock Exchange. The first day of trade saw the share price increase 14%.  Demand for shares in the IPO were so high, the stock was over-subscribed 3.5 times.  Bank Windhoek’s operating profit for the financial year ended 30 June 2014 equalled N$624.9 million, a 26% increase on the preceding financial year while basic earnings per share increased 15% to equal 124.7 cents per share. Bank Windhoek’s net interest income surpassed the billion dollar mark for the first time ever to N$1.1 billion following a 15% year on year rise.  A considerable achievement worth noting is the growing asset base. For its latest financial year, the bank reported year on year growth of 16% to N$24.2 billion on the back of a 14.7% increase in loans and advances to N$20.2 billion. The prudent management of resources resulted in a slight decline in operating expenses which totalled N$914 million.