FirstRand Namibia Limited has advised shareholders that the group’s profit after tax for the period ended 31 December 2023 is expected to be 0% to 5% lower than the comparative period partly due to higher impairments, with pre-provision profit improving between 3% to 8% with strong underlying performance from operations.
The group’s reviewed financial results will be released on 29 February 2024, said Nelago Makemba company secretary.
By comparison, FNB Namibia’s earnings for the six months ended 31 December 2022 increased by 38% to N$813 million, a performance the company said was a testament to the quality of its operating businesses, driven by FNB and RMB.
Pre-provision profits grew 33% to N$1 271 million from N$957 million, income from operations increased by 22% to N$2 265 million and the group produced N$348 million of economic profit, or net income after cost of capital (NIACC), which is one of the group’s key performance indicators.
FNB Namibia’s earnings remain tilted towards its banking activity and are mainly generated by its large lending and transactional.
In the period ending, 31 December 2022 the company said it delivered strong revenue growth of 22%.
The credit loss ratio decreased year on year to 26 basis points and continued cost containment resulting in our headline earnings increasing by 37% to N$813 million. The group’s return on equity (ROE) increased to 27.8% (2021: 21.6%).
In terms of financial performance for the six months ended 31 December 2022, FNB said six months to December 2022 saw more relief from the COVID19 related restrictions. Thus the prior year still had increased impairments and reduced volumes and hence the opening up to the increased performance for 2022, the company said.
As a result of that base effect, the group’s profit before tax increased with 38%. FNB Namibia has delivered an 8.2% compound annual growth rate (CAGR) in profit before tax since December 2019.
