Staff Writer
Analyst Fimanekeni Mbodo says the Bank of Namibia (BoN)’s net loss of N$893 million in 2025 was driven by currency movements rather than core operations.
Mbodo, from Cirrus Capital, said the figures must be read in context.
The bank’s results show a shift from a profit of N$1.37 billion in 2024 to a loss in 2025. Dividends paid to the government also fell from N$720 million to N$200 million.
Total income declined by 19.1%. This was mainly due to a 21.4% drop in net interest income, linked to lower global interest rates and reduced investment balances.
Operating expenses increased by 15% to N$849 million. This pushed the cost-to-income ratio to 59.9%, up from 42.3% the previous year.
Mbodo said the bank’s core operations remained profitable. He said the reported loss was mainly caused by a N$1.47 billion currency translation loss.
He explained that the central bank holds foreign reserves in foreign currencies. When the Namibian dollar strengthens, the value of those reserves falls when converted into local currency.
Under the Bank of Namibia Act, these changes are absorbed through the Foreign Currency Revaluation Reserve.
The reserve declined from N$8.6 billion to N$7.2 billion during the year, equal to 11.5% of total assets.
Despite the loss, the bank recorded N$553 million in distributable income and paid a dividend of N$200 million.
Mbodo said the bank’s performance should be viewed against its broader role, which includes managing reserves, maintaining financial stability, issuing currency and advising the government.
