Standard Bank sees economy on positive trajectory

Standard Bank Namibia (SBN) Holdings Limited says Namibia’s economic performance is expected to continue on a positive trajectory with stable growth expected over the remainder of the forecast period to 2027.

SBN said growth will be supported by a broader and more sustained recovery across most sectors of the economy, while structural reforms implemented by the sovereign will continue to aid growth over the mid-term.

“Looking ahead, our strategic focus areas of transforming client experience, executing with excellence, and driving sustainable growth and value for all stakeholders will guide our actions. We recognize the vital role that the bank plays in society, and we are committed to fulfilling that role with integrity and purpose,” said in financial results for the year ended 31 December 2023.

Namibia’s gross domestic product (GDP) growth is estimated to decline to 3.9% from 7.6% GDP of 2022.

Financial results for the 2023 financial year improved despite the estimated decline in GDP growth. Profit after tax for the group grew by 23.3% and Return on Equity increased to 15.6%.

Profit for the year increased by 23.3%, up from N$624 million to N$770million. Main contributors to this growth is the increase in net interest income of 24.6% due the positive endowment effect ensuing from continued repo rate increases, 32.2% growth in trading revenue, 28.5% increase in bancassurance revenue and a N$27 million increase in property related revenue.

The group declared a final cash dividend of 58 cents per ordinary share. Including the interim dividend of 42 cents per ordinary share, this represents a total dividend of 100 cents per ordinary share (2022: 66 cents), a 51.5% increase on the total dividend per share for 2023.

There was a significant increase in deposits from customers and banks of 10.4% to N$30.2 billion, mainly driven by an increase in demand deposits which was offset by a decrease in negotiable certificates of deposits (NCDs).

“These changes reflect our efforts to change our deposit mix to meet strategic goals. Debt securities decreased by 11.8% following the redemption at maturity of the SBKN23 bond with an issuance volume of N$300 million during the year.”

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