Standard Bank Namibia achieved positive financial performance of N$235 million profit after tax for the past six months ended 30 June 2015 as announced by the bank early this week.
Standard Bank Namibia’s Chief Executive, Vetumbuavi Mungunda said, “We are pleased that our interim financial performance continues to show positive returns in a really tough economic climate and ensure that we continue to support Namibia in its growth. This reinforces our confidence that we are focusing our attention in the right areas.”
For the group results, Standard Bank Namibia (SBN) Holdings produced a positive performance for the six months ended 30 June 2015, increasing profit after tax by 39% and loans and advances by 19%.
The group return on equity (ROE) has increased to 22.7% from 17.2% in the first half year results for 2014. Total income grew by 18% and expenses grew by 12% reflecting the investment made in systems and infrastructure over the past three years. Credit impairment charges were 13% lower than June 2014, indicative of the progress made in the management of our loan book. The SBN Holdings maintained a well-capitalised position based on tier I, total capital adequacy and leverage ratios throughout the 6 months under review.
Furthermore, SBN Holdings has complied with Basel III compliant internal liquidity standards throughout the period including a net stable funding ratio and a liquidity coverage ratio calculated on a daily basis.
In terms of prospects, the bank said global growth of 3.3% is expected in 2015, marginally lower than in 2014, with a gradual improvement in advanced economies and a slowdown in emerging market and developing economies. The domestic economy is expected to grow by 5% in 2015, down from the initial estimate of 5.4%. The growth in the remainder of 2015 and over the next two years is expected to be driven mainly by the construction, infrastructure sectors and public works programmes. “We have seen continuing stability in our IT environment, strengthened our balance sheet and continue to strive for operational efficiency through increased digitisation and integration of the universal banking model. We will continue to leverage our brand, market positioning and talented staff to better service our clients and customers within Namibia,” said Mungunda.