Good profit for Standard Bank
In its half-year financial statement, Standard Bank Namibia Holdings recorded a profit after tax amount of N$282 million as at 30 June 2017.
Standard Bank Namibia Holdings has grown its profit after tax by 10.8% off the back of moderate loans and advances, growth to customers of 7.9% and a 24.6% reduction in credit impairment charges.
“Total income grew by 3.7% whereas expenses grew by 3.0%, signalling the start of the 'plateauing' of our expense growth, following the expansive investment cycle in our core-banking system and physical infrastructure.
“We are continuing with our progress in managing our loan book as evidenced by the decline in the credit loss ratio to 0.5% from 0.7%. Our return on equity saw a slight decline from 20.3% to 19.9%. This was largely attributable to a lower dividend payment, diluting the return,” said Standard Bank's chief financial officer, Bryan Mandy.
The Group remains appropriately capitalised with tier 1 and total capital levels at 11.7% and 14.94% respectively. Standard Bank is in a good position to meet the progressively higher requirements arising from Bank of Namibia's intent to implement Basel III capital standards in the near future.
“Standard Bank Namibia maintained its strong liquidity position within approved risk appetite and tolerance limits. Total liquidity remained in excess of specific prudential requirements and remains adequate to meet all internal stress testing, prudential and regulatory requirements,” said Standard Bank's CEO, Vetumbuavi Mungunda.
The outlook for private-sector credit extension continues to improve, albeit slightly. However, sluggish demand for mortgage and vehicle loans will in all likelihood persist over the short to medium term. Also bearing in mind the latest Q1 GDP release from the NSA that now affirms that Namibia is in a recession, makes for a relatively difficult outlook.
“We continue to focus our efforts into transforming Standard Bank into an innovative and forward thinking bank that is moving towards, understanding and delivering what matters to customers,” said Mungunda.
STAFF REPORTER
Standard Bank Namibia Holdings has grown its profit after tax by 10.8% off the back of moderate loans and advances, growth to customers of 7.9% and a 24.6% reduction in credit impairment charges.
“Total income grew by 3.7% whereas expenses grew by 3.0%, signalling the start of the 'plateauing' of our expense growth, following the expansive investment cycle in our core-banking system and physical infrastructure.
“We are continuing with our progress in managing our loan book as evidenced by the decline in the credit loss ratio to 0.5% from 0.7%. Our return on equity saw a slight decline from 20.3% to 19.9%. This was largely attributable to a lower dividend payment, diluting the return,” said Standard Bank's chief financial officer, Bryan Mandy.
The Group remains appropriately capitalised with tier 1 and total capital levels at 11.7% and 14.94% respectively. Standard Bank is in a good position to meet the progressively higher requirements arising from Bank of Namibia's intent to implement Basel III capital standards in the near future.
“Standard Bank Namibia maintained its strong liquidity position within approved risk appetite and tolerance limits. Total liquidity remained in excess of specific prudential requirements and remains adequate to meet all internal stress testing, prudential and regulatory requirements,” said Standard Bank's CEO, Vetumbuavi Mungunda.
The outlook for private-sector credit extension continues to improve, albeit slightly. However, sluggish demand for mortgage and vehicle loans will in all likelihood persist over the short to medium term. Also bearing in mind the latest Q1 GDP release from the NSA that now affirms that Namibia is in a recession, makes for a relatively difficult outlook.
“We continue to focus our efforts into transforming Standard Bank into an innovative and forward thinking bank that is moving towards, understanding and delivering what matters to customers,” said Mungunda.
STAFF REPORTER
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