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Standard Bank reports strong performance

Standard Bank reports strong performance

Standard Bank Namibia Holdings group produced a strong performance in 2015, increasing profit after tax by 45% and loans and advances by 11%.
The Group’s return on equity (ROE) has improved to 23.56% from 17.67% in 2014. Total income grew by 20% and expenses grew by 13%, resulting in a positive JAWS ratio of 7% reflecting an appropriate balance between cost management, long term investment and revenue enhancing activities. This focus also manifested into efficiencies as indicated by our cost to income ratio improving to 58.34% from 62.04%.
“The Standard Bank Namibia of today is substantially better equipped to innovate and to consider and embrace new and better ways of doing things. This is rooted in greater collaboration, accountability and effectiveness that can counter the complexity that so easily hampers large organisations. Our industry is changing faster than ever before and we must be able to respond effectively to this change to stay relevant to the economies and societies we serve. It is this, ultimately, that underpins sustainable profitability and value creation,” said Vetumbuavi Junius Mungunda, Standard Bank Namibia Holdings Chief Executive Officer.
Net interest income increased 30% mainly as a result of growth in interest earning assets, funding efficiencies mix and higher margins. Margins improved due to re-pricing of new business in the mortgage, business and personal term lending books to better reflect the risk and costs of anticipated regulatory changes.
Other operating expenses increased by 14% largely as a result of increased IT expenditure including higher consultancy and software license fees. Our branch expansion and revamps also contributed to cost increases.
Total assets increased by 10% to N$24 billion. The main contributors to this growth were an increase in loans and advances, financial investments and trading assets. Total loans and advances were up 11%. Contributing to the increase in loans and advances was a 7% increase in mortgage loans. Other term loans increased by 21% mainly due to the increased term loans to corporates. Instalment sale and finance leases increased 11% due to growth in the passenger vehicle market. Deposit and current accounts increased 4% to N$18.2 billion (2014: N$17.5 billion) through a focus on deposits and current accounts, higher foreign currency balances and higher client working capital requirements.
Mungunda said, “our capital and liquidity strength, together with our firm commitment to our strategy which includes the building of world-class systems, provides substantial opportunity to elevate our Return-on-Equity and deliver higher levels of economic value to our stakeholders over the medium term”.

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