Bank Windhoek total income up 21%

Bank Windhoek Holdings Limited this week published its reviewed consolidated interim group results. The group continued to achieve sound performance for the half year, ended 31 December 2015, reporting profit after tax for the period of N$455 million, an increase of 26.4% year-on-year.
“The positive contribution to the financial performance of our group was evenly spread throughout the business”, said outgoing Managing Director Christo de Vries.
Key performance highlights include Headline earnings increasing by 26.4% to N$456 million while Group total comprehensive income increased by 30.8% to N$501 million and an increase in net asset value per share of 18.4%
Jaco Esterhuyse, Chief Financial Officer of Bank Windhoek Holdings added that net interest income increased by 21% to N$727.9 million for the half year ended 31 December 2015. The group also continues to improve its efficiency and diversification ratios with non-interest income covering 83.2% of operating expenses and contributing 40.9% of operating income.
For the six months ended 31 December 2015 non-interest income increased by 21.7% to N$481.4 million. The growth in non-interest income is mainly due to strong growth in commission and income from trading activities, which include income earned from the Kwanza trading activities. The dispensation from Bank of Namibia for Namibian banks to trade in Kwanza was ended in December 2015 and no further income from this source is anticipated.
Bank Windhoek Holdings remains well capitalized, with a total risk-based capital adequacy ratio of 14.5% (December 2014: 15.7%), well above the minimum regulatory requirement of 10%.
An interim dividend of 30 cents per ordinary share was declared on 10 February 2016 for the half year ended 31 December 2015.
“The group is expecting a challenging operating environment with sluggish economic growth, increasing interest rates, increasing inflation and a weakening currency. These negative key economic indicators are likely to cause the Namibian consumer to experience financial pressures over the short to medium term. Despite the challenging operating environment, we remain positive and will continue to manage our risks, improve our service offering, grow our customer base and capitalize on the opportunities it brings,” concluded de Vries.