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Half-year results show positive commitment – FNB

Half-year results show positive commitment – FNB

FNB Namibia Holdings half-year results (31 December 2016) were released this week in the context of an embattled economy.

Previously flourishing on pro-cyclical fiscal spending and foreign investment in new mines and infrastructure, the Namibian economy is facing severe headwinds that include a current economic growth forecast for 2016 which has been revised downwards by government and most research houses.

“For the period under review, the economy was challenged by lower commodity prices, severe drought conditions, weaker global and regional growth, and a sudden slump in the construction and manufacturing sector. FNB Namibia Holding’s performance for the six months ended 31 December 2016, reflects the impact of the macroeconomic environment,” said Oscar Capelao, Chief Financial Officer at FNB Namibia Holdings.

While the Namibian group’s local investment continued at full commitment – in infrastructure, capacity-building referenced to increasing regulatory rigour, corporate social responsibility projects, community development and disaster relief support, and necessary people development and training; rising costs and falling incomes in real terms, affect normally high returns to stakeholders and shareholders.

FNB’s core operations have performed well over the period with active accounts up by 9%, Electronic channels, such as eWallets showing growth of 44% and point of sale transactions growing by 12%, and advances growth of 8.4%.

However, performance was impacted by the increased cost of funding in the current tighter liquidity environment and investment in risk management.

Profit for the half-period is N$599.2 million, compared to N$597.4 million in 2015: Earnings per share are flat at 226.3 cents compared to 2015’s 226.5 cents.

Other key ratios reflect a similar trend. Return on average equity was 30.3% compared to 35.4% in 2015, return on average assets at 3.5% (2015: 3.9%) and cost to income ratio at 46.3% (2015: 42.4%). The return on average equity at 30.3% is closer to the five year long term average of 29%.

Normalised earnings for the period increased by 7% paralleled to the prior period, after adjusting for Kwanza trading in the base, the @Parkside building depreciation, and fair value income volatility.

An interim dividend for the six months ended 31 December 2016 of 91 cents per ordinary share was declared on 31 January 2017.

Said Sarel van Zyl, CEO at FNB Namibia Holdings, “While we anticipate operating conditions to become more demanding – in both the economic and regulatory environment, we believe our strong balance sheet, diversified earnings base and innovative customer solutions and service will work together to deliver a continued solid and sustainable performance.”

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

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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.