CHAMWE KAIRA
SBN Holdings Limited’s loan book included a N$2 billion facility extended to the ministry of finance in support of the Eurobond redemption programme, contributing to a 17.4% increase in gross loans and advances to customers to N$29 billion for the six months ended 30 June 2026.
Excluding the facility, underlying customer loan growth was 9.3%, SBN Holdings, the parent company of Standard Bank Namibia, said in its interim results.
Corporate lending increased by 15.5%, while vehicle and asset finance grew by 19.5%. Home loans increased by 1%, returning to positive growth for the first time since 2022.
The group said its loan growth materially exceeded average private sector credit extension growth of 4.5% at the end of June.
Despite the impact of lower lending rates following cumulative policy rate reductions of 50 basis points, SBN Holdings reported a 3.6% increase in profit after tax attributable to ordinary shareholders to N$576.4 million, from N$556.2 million in the corresponding period last year.
Headline earnings rose to N$576.3 million from N$556.6 million, while basic earnings per share increased to 110 cents from 106 cents.
Net interest income increased by 6% to N$1.11 billion from N$1.05 billion a year earlier, supported mainly by a 16% increase in average loans and advances and disciplined management of funding costs.
The group said lending income benefited from higher customer balances, although this was partly offset by lower lending rates.
Deposit growth was accompanied by a shift towards lower-cost current account balances, reducing reliance on more expensive call deposits.
Non-interest revenue increased by 2% to N$809 million. Net fee and commission income rose by 3.1%, while trading revenue increased by 23.6%, supported by higher foreign currency sales to clients in import-oriented and investment-led sectors, particularly mining and oil and gas.
Other income declined by 11.7%, mainly because the prior-year period included N$31 million in gains from property disposals. Investment income also declined following the reallocation of surplus funds towards customer lending.
SBN Holdings said that excluding the prior-year property disposal gain, underlying other income would have increased by 22%, while total non-interest revenue would have grown by 6%.
The group maintained its impairment charge at broadly the same level as the previous year despite growth in the loan book, while its credit loss ratio improved by 10 basis points.
SBN Holdings said increases in Stage 2 exposures were primarily precautionary migrations of accounts showing early signs of financial stress, while the increase in Stage 3 exposures was linked to a limited number of specific accounts moving into default.
Operating expenses increased by 3.5% to N$1.04 billion, remaining below the average inflation rate of 4.4% recorded in June 2026.
Staff costs increased by 8.7%, while IT costs rose by 1%, partly offset by a 3.4% decline in other operating expenses. The cost-to-income ratio improved to 54% from 54.4% a year earlier.
