Chamwe Kaira
FirstRand Namibia has reported strong interim results for the six months ended 31 December 2025, as it positions itself to benefit from expected growth in oil and gas investment and an improving domestic outlook.
Namibia’s economic prospects hinge on improved agricultural yields, rising uranium production and renewed activity in mining, exploration and infrastructure.
The anticipated final investment decision (FID) by global oil and gas companies could reshape the investment landscape. A positive FID could attract foreign capital, drive further investment and create opportunities across sectors.
The group said robust monetary policy and improving consumer sentiment should support household spending and private sector credit growth. Growth, however, will depend on national GDP performance and the outcome of the oil and gas FID. The recent foot-and-mouth disease outbreak may weigh on agricultural output and exports.
For the period under review, FirstRand Namibia recorded a profit of N$1.068 billion, up from N$926 million in the same period in 2024. Headline earnings rose to N$1.066 billion from N$925 million. Return on equity improved to 30.2% from 29.6%.
Interest income declined by 7.2% to N$2.847 billion. This reflected a 25-basis point cut in the repo rate and a 25-basis point narrowing of the prime-repo spread over the past year. Interest expenses fell by 28.8% due to lower institutional funding. The lower rate environment did not result in a similar reduction in interest paid to depositors due to the endowment effect.
Net interest income increased by 11.2% to N$1.841 billion. The net interest margin improved to 6.3% from 5.4%.
Credit risk metrics improved. Impairment charges declined to N$173 million from N$263 million in 2024. The credit loss ratio fell to 0.4% from 0.7%. The non-performing loan ratio declined to 4.3% from 6.0%. The higher credit loss ratio in the prior year followed regulatory changes that shortened the write-off period for non-performing loans under BID2, which the group has now fully integrated. Loan defaults declined due to ongoing credit management.
Non-interest revenue, including insurance service results, rose by 3.9% to N$1.396 billion. Growth in fees, card commissions and transaction volumes across digital and traditional channels supported the increase. Customer acquisition and product innovation expanded the active customer base. Non-interest revenue accounted for 45.6% of total income, compared to 49.1% in the prior year.
Operating expenses increased by 10.4% to N$1.536 billion. The group invested in digital transformation, regulatory compliance and human capital. The cost-to-income ratio rose to 47.4% from 46.5%, remaining below 50%. Staff costs increased by 10.6% due to annual salary adjustments and targeted hiring. IT costs rose due to investment in technology, data analytics and automation.
Total assets declined by 2.6% after the group exited its structural asset and liability management hedge in January 2025. Net advances grew by 6.6%, mainly within RMB, driven by a 58.7% rise in term loans. Deposits increased by 4.0%, supported by a 9.4% rise in franchise deposits, which offset a 26.7% decline in institutional funding. Return on assets improved to 3.4% from 3.0%.
FirstRand Namibia maintained a capital adequacy ratio of 20.3% at December 2025, above regulatory requirements. Tier 2 capital contributed 2.1% to total capital adequacy.
The board declared a final ordinary dividend of 221.77 cents per share.
