Steytler bullish despite inheriting N$250m DBN loss

Development Bank of Namibia (DBN) CEO Dr John Steytler says striking a balance between the developmental impact mandate of the bank and its financial sustainability would boost its performance - after the institution recorded losses of N$251.9 million for the year ended March 2023.DBN’s integrated annual report for the year ended March 2022 showed further losses of N$191.1 million.The development lender&#039;s annual report showed that it had to write off N$704 million in impaired loans for 2023 alone, while N$109 million in impaired loans had to be written off in the previous year, according to notes provided. Of the total, loans to the tune of N$45 million were settled over the same period. Total loans made out to DBN customers, which continue to be amortised, amount to N$1.6 billion.The DBN reported a slight uptick in operating expenses of N$152.9 million, with salaries and personnel costs contributing to the biggest chunk to the lender&#039;s operating expenses for the year under review at N$103 million.The bank is also battling 34% non-performing loans, which are loans that are subject to late repayment or are unlikely to be repaid by the borrower. Non-performing loans in the small- and medium-sized (SME) enterprises segment stand at a shocking 63%.Difficult financial positionSteytler, the former statistician-general who also worked as director of economic research at the Bank of Namibia as well as economic advisor to President Hage Geingob, took over as head of the state development bank in September.His first month at the bank has helped him understand the full scale of the job at hand, as well as challenges and potential opportunities, he said.Regarding challenges, Steytler said 49% of clients are not servicing their loans, which has placed the bank in a difficult financial position.“The loans given to SMEs are particularly concerning. As matters stand, only 30% of loans are being serviced. The remaining 70% of those loans are essentially dormant,” he said.Steytler, however, is optimistic about the opportunities the bank can exploit to advance the national development agenda, while sustaining itself in the long run.“Sustainability of the development bank is crucial. The development mandate of the bank cannot be carried out if the institution is not financially sustainable,” he pointed out.Turned the cornerAccording to him, the Namibian economy has ‘turned the corner’, a situation which augers well for the bank. “I am optimistic about the future,” he said with a grin on his face.“Our immediate target for now is to break even, then we can start targeting making a profit.”The bank’s current strategic plan is coming to an end, with the new one soon in the offing. “The next strategic plan will seek to balance the developmental impact, as per our mandate, and financial sustainability of the bank. The latter is important for the future existence of the bank, but it can only happen when people are servicing their loans.”“It’s a loan, not a grant,” the economist emphasised. “Pay so that others in the future may also benefit.”Under Steytler&#039;s leadership, the bank will also seek to strengthen its business rescue strategy through coaching, restructuring and other interventions.“That’s one of the ways where we’re different from commercial banks. Where we see potential in a business proposal presented to us, we will help the owner to refine the approach until it is feasible for us to fund the business or project.” Big shoesDespite the challenges, Steytler sang the praises of his two predecessors, founding CEO David Nuuyoma and Martin Inkumbi, who left the bank recently.“David and Martin did an exemplary job and now I have big shoes to fill. It’s a huge challenge to catch up with their success,” he said.A conceptual brainchild of former president Sam Nujoma, the bank opened its doors in April 2004.“The vision president Nujoma had is still what the bank is about – to impact lives positively. I’m glad that our two subsequent heads of state, presidents Hifikepunye Pohamba and Hage Geingob, share in that vision and have been very supportive of the bank.“We’re also very happy that there has been no political interference in running the bank,” Steytler said.

Steytler bullish despite inheriting N$250m DBN loss

Comments

Namibian Sun 2025-09-16

Please login to leave a comment

Steytler bullish despite inheriting N$250m DBN loss

Comments

Namibian Sun 2025-09-16

Please login to leave a comment

Login