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Tertiary sector dominates DBN loan book

Development Bank of Namibia, Chairperson Elize Angula

Development Bank of Namibia, Chairperson Elize Angula

The Development Bank of Namibia (DBN) this week unveiled their annual report for the year ended 31 December 2013, a period during which the bank posted substantial growth.
Development Bank of Namibia, Chairperson Elize Angula said that the bank not only grew substantially in 2013, but that it also set the stage for substantial growth in 2014.
The Chief Executive of the Bank, Martin Inkumbi said “the bank’s approvals in 2013 were N$840.1 million, up from N$519 million in 2012. Of the approvals in 2013, 93% was allocated to projects with involvement of previously disadvantaged locals. The effective BEE component was N$357 million and effective component allocations to women amounted to N$95.7 million.”
“The majority of approvals, 64.7%, were made in the tertiary sector, followed by 35.1% in the secondary sector. The key sectors of transport and manufacturing received 33.8% and 13.1% respectively, while the tourism sector received 7.2% of the loan approvals during the period,” he added.

The bank was represented in all regions through its new approvals. Projects at national level had the highest share of approvals at N$250.3 million, while the Khomas Region followed at N$135.6 million. The Erongo Region featured in third position with N$135 million, then Otjozondjupa with N$103.8 million with the other regions trailing behind. Inkumbi said the bank’s total assets grew by 17% to N$2,376 billion, on the back of further capitalisation by the shareholder and profits during 2013. Loans and advances increased by 24% to N$1,727 billion during the period, while equity investments grew by 84% to N$130.4 million. The bank’s net interest income grew by 25% to N$165.3 million for the period, in line with the 24% growth in the bank’s loan book. Inkumbi also said that the level of impairments for 2013 decreased during the period in comparison to the previous year and reflects the prudent credit management process of the bank. Meanwhile in their presentation of the annual financial report Inkumbi, said the bank’s activities had an impact on 7871 jobs during 2013, of which 1619 were new jobs and 3084 were temporary. This brought the total number of jobs impacted by the bank since inception to 49,045.

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