CHAMWE KAIRA
FirstRand Namibia’s net profit after tax increased by 12.2% to N$2.14 billion for the financial year ended 30 June 2026, supported by growth in net interest income, lower impairment losses and continued expansion in advances and deposits.
The group’s headline earnings per share increased by 12.3% to 802.5 cents, while basic earnings per share also rose by 12.3% to 803.5 cents.
The group declared a final ordinary dividend of 446.57 cents per share, representing an increase of 57.2% from 284.02 cents declared in the previous year. Total ordinary dividends for the year increased by 40.3% to 668.34 cents per share.
Net asset value per share increased by 10.9% to 2,963 cents.
Return on equity remained broadly unchanged at 28.5%, compared to 28.6% in the previous financial year, and remained above the group’s target range of 22% to 25%.
Net interest income increased by 9.4% to N$3.67 billion from N$3.35 billion in 2025, supported by an improvement in the net interest margin to 6.4% from 5.9%.
Interest income, however, declined by 2.8% to N$5.69 billion as repo rate changes during the financial year and the narrowing of the 25-basis point prime-repo spread affected growth.
The impact was partly offset by net advances growth of 9.2%, while investment securities income increased by 11%, supported by higher holdings of higher-yielding treasury bills.
Interest expense declined by 19.2%, following a reduction in more expensive institutional funding as franchise deposit growth strengthened during the year.
Non-interest revenue, including the insurance service result, increased by 2.8%, supported by growth in fee and card commission income and higher transaction volumes across digital and traditional channels.
Impairment losses declined by 52.8% to N$249 million, driven by higher recoveries and a reduction in business-as-usual specific impairments.
The credit loss ratio improved to 0.6% from 1.3%, while the non-performing loans ratio declined to 3.8% from 5.2%. The group said the ratio was below the industry average of 4.2% recorded in June 2026.
Operating expenses increased by 11.5% to N$3.12 billion, resulting in the cost-to-income ratio rising to 48.5% from 46.2%. The ratio nevertheless remained within the group’s target range.
Staff costs increased by 10.8% to N$1.77 billion and accounted for 57% of total operating expenses. The increase was attributed to salary adjustments and growth in permanent headcount, particularly in client-facing roles and digital capabilities.
Total IT spending amounted to just over N$1 billion, representing 32.3% of group expenses. The spending was directed towards IT capacity, technology operations, new development initiatives, payment capabilities and increased software licensing.
The group also contributed N$19.1 million to the FirstRand Namibia Foundation.
Total assets increased by 12.2%, while return on assets improved to 3.6% from 3.3%. Growth was mainly driven by advances and investment securities, with investment securities increasing by 39.8%.
Net advances increased by 9.2% to N$42.8 billion from N$39.2 billion.
The group said the growth was primarily driven by RMB, where advances increased by 35%. FNB advances increased by 2.4%, affected by capital repayments and muted growth in home loans, while WesBank advances increased by 12%.
Deposit growth outpaced advances, increasing by 14.3% to N$52.1 billion from N$45.6 billion.
The growth in deposits was broad-based across the group’s franchise deposit products and enabled the group to reduce its reliance on more expensive institutional funding.
The group maintained a capital adequacy ratio of 21.7%, compared with 20.3% in the previous year, remaining above regulatory minimum requirements.
FirstRand Namibia said its financial performance reflected disciplined execution, prudent risk management and growth across client segments and sectors, despite challenging market conditions.
