Bank pays N$110 million in dividends

After tax profits boosted by a massive 28%

Bank Windhoek has declared a dividend of 2253.8 cents a share for the financial year ended 30 June 2012 after recording an after tax profit of N$356 million compared to N$278 million in 2011.
Bank Windhoek’s total assets now stand at N$18.6 billion making it the second biggest bank by assets above Standard Bank Namibia whose assets stood at just over N$16 billion as of 31 December 2011. At N$19.7 billion, FNB Namibia remains the biggest commercial bank by assets.
In a statement to shareholders released Thursday, Bank Windhoek attributed the increase in assets mainly to a 19% growth in gross advances which grew by N$2.5 billion to N$15.5 billion. An increase in mortgage loans and asset backed finance portfolios contributed to the growth in advances.
Managing Director Christo de Vries said the continued prudent credit risk management principles applied by the bank resulted in the attainment of an acceptable low level of 0.2% of bad debts as a percentage of gross advances.
The cost to income ratio was contained at 55% down from 58% in the previous year. Although the risk weighted capital ratio decreased from 13.2% to 12.4%, it was still comfortably above the 10% statutory requirement.
De Vries attributed the bank’s “positive performance” to the dedication by the staff and management of the bank as well as the continued loyalty of clients in addition to controlled asset growth, effective management of credit and continued focus on efficiencies.
Going forward, de Vries said the continued uncertainty in the global economic environment together with increased regulation on capital and liquidity requirements, will remain a challenge.
“The Bank will continue to focus on risk management to identify and address internal risks arising from the operations of the Bank as well as external risks arising from the external environment in which the bank operates,” he said.