Chamwe Kaira
FirstRand Namibia Limited expects earnings and headline earnings for the year ended 30 June 2025 to rise by 10% to 15% compared to the previous year.
“The main drivers of the increase in headline earnings are growth in customers, increased customer activity and effective cost containment. The group’s audited financial results will be released on or about 11 September,” the Namibian Stock Exchange, listed company said in a trading statement.
For the year ended 30 June 2024, the group, which includes FNB Namibia, recorded a net profit after tax of N$1.704 billion, up from N$1.561 billion in the prior year, a 9.1% increase. FirstRand said the earnings growth was supported by an improved trading environment, higher credit extended, and base growth. The interest rate hiking cycle also contributed to improved performance.
Net interest income rose by 14.3% to N$3.082 billion during the period, supported by advances growth, strategic pricing, and the higher rate environment. Interest income grew by 21.9%, while interest expense increased by 30.9%.
“The impairment charge for the year increased with 99.3% to N$426 million driven by client strain experienced because of higher interest rates, sticky inflation and as a result we saw increased defaults in commercial business banking and SME sectors and in personal loans and home loan products for retail customers,” FirstRand said in its 2024 results.
The group said the higher interest rate environment is expected to continue into the new financial year, putting customers under pressure until rates and inflation ease.
FirstRand remained well capitalised throughout the period, with a capital adequacy ratio of 17.6%, compared to 17.9% in 2023, and tier 1 capital of 16.7%, down from 17.0% the previous year.
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FirstRand Namibia Limited is expecting higher earnings.
- Photo: Contributed
