Chamwe Kaira
FirstRand Namibia reported a net profit after tax of N$1.9 billion for the year ended 30 June 2025, up 12.2% from N$1.7 billion in 2024.
The group said the results were driven by customer growth, higher transaction volumes, and effective cost containment despite rising impairments. Return on equity improved to 28.6% from 27.8%. Net asset value per share rose to 2,676 cents from 2,329 cents.
A dividend of 476.34 cents per share was declared, representing a 34.7% year-on-year increase.
“We are pleased with our progress on the key drivers of shareholder value creation. Our performance reflects disciplined financial resource management, strong customer growth, and effective cost containment,” said chief financial officer Lizette Smit.
“We are well-positioned to respond to emerging risks and leverage strategic opportunities.”
Private sector credit extension grew steadily, led by a 10.6% rise in corporate credit demand. Household demand also increased but remained constrained by low mortgage growth.
Total advances grew by 3.9%. FNB advances were held back by regulatory write-offs, higher repayments, and slower market growth, while RMB achieved 16.2% growth by focusing on sectors with above-cycle potential.
“We continue to employ a considered and market-leading approach to credit extension. This supports our customers while protecting the balance sheet and depositors’ return profile. Our credit performance for the year was in line with expectations, reflecting our origination strategy and approach to customer affordability and quality lending,” FNB said.
Deposits grew by 2.1%, maintaining FNB’s position as the largest custodian of retail and commercial deposits in Namibia.
The bank attributed this to competitive pricing, targeted offerings in transactional deposits and call accounts, and active customer growth.
Impairments rose 23.9% to N$527 million due to higher write-offs, though improved recoveries helped limit the impact. The credit loss ratio increased to 1.3% from 1.1% in 2024.
“The increased write-offs during the year were necessitated on the back of regulatory changes that took effect during the period, as well as a review of write-off points where recovery was deemed to be exhausted,” the group said.
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Lizette Smit
