CHAMWE KAIRA
Standard Bank Namibia Holdings reported to shareholders this week that profit after tax for the period ended 30 June is expected to be substantially higher, by between 35% and 40%, than what was reported for the comparative period.
“Therefore, earnings and headline earnings per share for the period ended 30 June 2024 are expected to be substantially higher, by between 35% and 40% (between 95 and 98 cents per share), than what was reported for the comparative period (70 cents),” the company said in a trading statement.
The bank advised shareholders that the financial data upon which this trading statement is based have not been reviewed or reported on by the group’s external auditors.
“Shareholders are advised to exercise caution when dealing in the group’s securities. The group’s financial results for the six months ended 30 June 2024 are expected to be released on or about 15 August,” the company said.
In results for the year ended 31 December 2023, the bank had reported that the profit for the year increased by 23.3%, up from N$624 million to N$770million. Main contributors to this growth were 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
Non-interest revenue increased by 13.4% to N$1 455 million, driven by a 32.2% growth in trading revenue from increased client flows and volatility in currency markets. Other revenue grew to N$199 million from N$146 million year on year. This 36.6% growth was mainly due to a 28.5% increase in bancassurance revenue, and an increase of N$27 million in property-related revenue earned mostly from the Spearmint property portfolio.
Operating expenses increased by 17.7% (normalised 11.7%) when compared to 2022. The increase originates from a 29.4% uptick in other operating expenses, driven by increases in IT expenses of 35.5% to support client growth strategies, a 5.3% staff costs increase in line with inflation and once off expenses incurred for the impairment of the underlying Spearmint properties and goodwill. The net impact of the
above is a marginal decrease of the cost to income ratio to 61% (normalised 58%) from 62% in prior year.
Gross loans and advances to customers (excluding banks) decreased to N$22.4 billion from N$23 billion last year.
The Corporate & Investment Banking (CIB) portfolio decreased by 2.4% to N$5.2 billion, mainly due to an early redemption of preference shares in the current period.
The Personal & Private Banking (PPB) and Business & Commercial Banking (BCB) portfolios declined by 3% to N$17.2 billion.
