CHAMWE KAIRA
Simonis Storm Securities has said if exploration in the Orange Basin moves to large-scale production, Standard Bank Namibia has established relationships with key upstream players that should translate into mandates for project finance, transactional banking, and treasury services.
The firm said this upside scenario could accelerate the loan book well beyond single-digit growth.
In terms of renewable energy financing, Namibia’s push for wind and solar in remote areas intersects with growing private sector appetite for sustainable energy solutions.
It said other banks are refining digital strategies but said Standard Bank Namibia Holdings’ synergy with the broader Standard Bank Group and entrenched local brand stands out as a differentiator.
Simonis said Namibia remains vulnerable to commodity price swings and climate shocks.
Maintaining non-performing loan discipline around 4% or below will require constant vigilance, especially in cyclical segments like tourism and agriculture.
“In short, this year’s milestone stands as a robust indicator that Standard Bank has turned a corner. Its strategic realignment and cultural dynamism, combined with forward-looking sector positioning, elevate the possibility of sustaining premium returns on equity well above local and regional peers, making it a compelling story in the Namibian financial sector’s next phase of development,” the firm said.
Simonis said Standard Bank Namibia Holdings’ crossing of the N$ 1 billion profit threshold marks a defining moment for the group, particularly given the relatively small scale of Namibia’s banking market.
The firm said, more importantly, a forensic review of the financial and operational disclosures reveals that this milestone is not simply the by-product of elevated interest rates but rather the outcome of deeper structural improvements across the franchise.
“This analysis unpacks the bank’s 2024 performance in depth, providing a forward-looking assessment of its strategic trajectory within Namibia’s evolving financial landscape and its positioning for future cross-border relevance.”
The firm said SBN Holdings’ net income of N$ 1.039 billion, up 39.2% year-on-year, set a historic benchmark and underscores the broad-based strength of the bank’s franchise.
“Total loans and advances grew by 2.4%. While this number falls short of the 2023 growth rate, Standard Bank Holdings is pivoting from a capital preservation mindset to a more proactive one. Strategy, selectively reallocating resources into high-potential sectors like tourism, mining, telecommunications, oil and gas, and agribusiness, which offer strong future prospects,” the firm said.
