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FNB kicks dust in competition’s eyes

FNB Group CEO, Ian Leijenaar

FNB Group CEO, Ian Leijenaar

First National Bank (FNB) Namibia Holdings last Friday released its full results reflecting a EBIT profit of N$1.171 billion. The retained (after tax) profit increased by 29% reaching N$785 million compared to last year’s N$608 million.
Chief Financial Officer Oscar Capelao, said at the launch of the group’s Annual Report “FNB’s top performance is underpinned by the design of relevant business strategies and the effective execution thereof, which resulted in profit before tax that passed the one billion mark.”
FNB Group CEO, Ian Leyenaar said “the performance was achieved by account and transaction and business volume growth rather than price increases. As a matter of fact, many services remain free while the others were increased in line with inflation.”
A final dividend of 67 cents per share was declared, resulting in an ordinary dividend distribution for the year of 122 cents a share, a 22 % increase on last year.
Other key ratios showed similar impressive improvement with return on equity improving to 30.9% from last year’s 25.9 %, return on assets was 3.2 %, up from 2.8 % and cost to income improved to 47% from last year’s 49 %.
Executive Retail Banking, Ester Kali reported “a 24 % growth in the use of FNB’s electronic delivery channels. The 21 % growth in the number of accounts over the past year has driven the 23 % increase in fee and commission income. The benefits of our strategy to create innovative electronic banking are passed on to customers through lower charges. Worth noting is that despite the opening of three new branches in Arandis, Khomasdal and Kuisebmond this year, electronic banking increased by 28 % while traditional banking operations increased by 3 %.”
From the revenue generated by FNB, N$552 million was spent on salaries and other benefits to employees while N$385 million was paid to the government in taxes while shareholders received N$283 million in dividends.

The other key operating entity of FNB, the largest primary-listed company on the Namibia Stock Exchange, is OUTsurance Insurance Company of Namibia Limited which saw a 26 % growth in premiums driven mostly by sales of personal-lines products.  
Leyenaar stressed that the excellent results are achieved due to the alignment of FNB Namibia to local market conditions, national development initiatives and growth opportunities, supported by innovative FNB strategies of introducing world class financial solutions and building a sustained profitable asset base.
 “We are confident that these plans, executed by our enthusiastic and diversified team of employees will continue to grow our business at a rate that exceeds the general market growth and validate the confidence of market analysts who still rate FNB Namibia shares a one of the best investment opportunities on the Namibian Stock Exchange.” Leyenaar said.

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