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FNB profit soars, yet again

Excessive profit among banks is now becoming commonplace. FNB Namibia Holdings proved this when it released its consolidated financial results for the year ended June 2016, on Thursday morning. The bank’s profit is up a staggering 21.9% or N$1.2 billion according to FNB Holdings chief bean counter Oscar Capelao.
CEO Sarel van Zyl said, “FNB positioned all its operating entities to make the most of limited growth opportunities and produced another set of excellent results in an increasingly difficult operating environment. We thank all our stakeholders, including the shareholders, staff, customers and the government for making these results possible so that we, in turn, can be partners to increased wealth for our country and its people.”
Headline earnings, adjusted for the sale of the Talas building in Windhoek increased by 15.7% to N$1136 million. Earnings per share increased to 459.7 cents (2015: 377.5 cents). “Normalised earnings – adjusted for headline earnings adjustments, non-operational items and regulatory anomalies – we believe are a more accurate reflection of performance” said van Zyl. Normalised profits for the year increased by 18.2% to N$1119million. Key ratios all remained good. An applying headline earnings, return on average equity was 31.0% (2015: 32.2%), return on average assets rose to 3.6% (2015: 3.5%) and the cost to income ratio improved to 43.7% (2015: 43.9%).
The Banking Group dominated the contribution to the local group’s earnings with net interest income growing by 13.8% to N$1653.6 million (2015: N$1452.8 million). Capelao elaborated, “Margins have not widened to the extent experienced previously when interest rates increased, mostly due to the relative increase in cost of funds during the cycle. Net interest margin improved slightly, mainly through higher interest income on advances. Advances priced mostly from the prime overdraft rate, which effectively increased by 75 basis points.”
Net fee and commission income increased by 13.5%, impacted by the Bank of Namibia’s directive exempting fees being charged on cash deposits made by individuals and SMEs which came into effect in April 2015. This item is also impacted by Namfisa’s directive on policy fees for FNB Insurance Brokers, FNB’s short term brokerage.
Group operating costs increased by 16% while generating an operating income growth of 19.6%. “This positive trend is reflected in the continued improvement of our cost to income ratio of 43.7% (2015: 43.9%). Staff related costs are up 15%, including growth in head count largely due to reinforcing our risk and compliance team. Other triggers of the inflationary increase include property costs reflecting constant investment in our footprint. While the focus was on the new Windhoek building, an additional outlet was opened in Rundu in December 2015 to alleviate branch congestion. In addition, 42 additional ATMs and mini ATMs were installed with associated data line, rental costs and guarding costs,” advised Capelao.
The group’s total assets grew by 14.8% to N$34.2 billion. Year-end advances, making up 75.4% of the balance sheet, reflected a year on year increase of 12.9% to N$25.8 billion. Average advances grew 14% on the back of business and corporate portfolios. Growth throughout the year has remained mostly ahead of private credit extension which was 12.1% in June 2016, although interest rate hikes have impacted the PSCE growth rate.

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Today the Typesetter is a position at a newspaper that is mostly outdated since lead typesetting disappeared about fifty years ago. It is however a convenient term to indicate a person that is responsible for the technical refinement of publishing including web publishing. The Typesetter does not contribute to editorial content but makes sure that all elements are where they belong. - Ed.

Following reverse listing, public can now acquire shareholding in Paratus Namibia

Promotion

20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.