CHAMWE KAIRA
FirstRand Namibia has said while the Namibian economy faces some near-term challenges, there are strong reasons for optimism heading into 2025. The firm said certain key sectors in the primary industry, such as oil and gas exploration, uranium, copper and agriculture, coupled with supportive policy measures, should lay the foundation for sustained economic growth in the medium term, according to the FirstRand consolidated interim financial results and cash dividend declaration for the period ended 31 December 2024.
The group remains well positioned to participate in opportunities in the oil and gas sector as they emerge, the firm said.
The business delivered solid results but is expecting growth in the second half of the year to be more muted. The impact of the rate-cutting cycle (a total of 75 basis points from August 2024 up to December 2024) will continue to lower endowment and impact net interest income growth, it added.
FirstRand said it benefitted from base effects in the comparative period that do not manifest for the second half.
“Changes in the credit write-off policy will also result in a higher overall cost of credit for the year versus the first half. Despite the above, the group’s strategy and customer franchise are well-positioned to navigate the evolving and dynamic economic landscape, as reflected in the strong operational performance achieved during the first six months of the 2025 financial period.”
The company said that its strategic priorities, along with careful money management, a strong risk management framework, and ongoing investments in people and technology, allow it to provide excellent customer service while also achieving long-term growth and increasing shareholder value.
The six months ended 31 December saw FirstRand Namibia’s profit increase by 10.8% to N$926 million.
Net interest income increased by 13%, from N$1.46 billion in December 2023 to N$1.65 billion, despite the repo rate dropping by 75 basis points for the period.
During the period ending December, the group, through FNB Namibia Limited, raised N$500 million in Tier 2 capital notes on the Namibia Securities Exchange (NSX).
“This issuance represents the first Basel III compliant note to be placed in the Namibian market, with its success paving the way for future issuances. The final order book was oversubscribed by 1.5 times, demonstrating strong investor confidence for the credit.”
The group maintained a strong capital structure throughout the period, consistently exceeding the minimum regulatory requirements. As of December 2024, the capital adequacy ratio stood at 19.1% (2023: 16.4%), while the Tier 1 capital ratio was 16.9% (2023: 15.5%).
“Our conservative capital position provides a solid foundation for sustainable growth, ensuring resilience while seizing new opportunities.”
