FNB overtakes Capricorn as biggest lender

FirstRand Namibia has overtaken Capricorn Group's Namibian banking operations as the country's largest lender, marking a significant shift in the competitive landscape as Standard Bank Namibia and NedNamibia expand their loan books at a faster pace.According to the 2026 Banking Review Report by PSG Wealth Namibia, FirstRand held 34.1% of the country's gross advances market at the end of June, ahead of Capricorn's 32.4%.Standard Bank Namibia accounted for 22.4%, while NedNamibia held 11.1%.The shift follows a year in which lending growth varied considerably across the four banking groups, with FirstRand consolidating its position while Capricorn's expansion slowed.Namibia's total gross advances increased by 9.6% year-on-year to N$129.4 billion in June 2026, the strongest growth recorded in a decade, according to PSG.FirstRand's gross advances increased by 8.2% to N$44.1 billion, while Capricorn's Namibian loan book grew by just 1.7% to N$41.8 billion.Standard Bank's advances increased by 17.4% to N$29 billion, while NedNamibia recorded the fastest growth, with its loan book expanding by 26.6% to N$14.3 billion.The figures suggest that the competitive balance within Namibia's banking industry is changing, with the two smaller lenders recording considerably faster lending growth than the country's traditional market leaders.PSG said FirstRand's lending performance was supported by a 35% increase in corporate advances through Rand Merchant Bank (RMB), highlighting the contribution of corporate and investment banking to the group's expansion.WesBank's advances also increased by 12%The performance comes as FirstRand strengthens its overall position in the sector. Its profit after tax increased by 12.2% to N$2.15 billion in the year to June 2026, while its return on equity reached 28.5%.Its net interest margin, which measures the difference between interest earned on loans and investments and interest paid on funding, increased to 6.4%, the highest among the four banking groups.Capricorn, meanwhile, experienced a more difficult year.The group's attributable profit declined by 6.1% to N$1.74 billion, while its earnings per share fell by 6.4%.Its Namibian lending operations grew modestly, with PSG pointing to a contraction in Entrepo's loan book as one of the factors behind the slowdown.At group level, Capricorn's advances declined by 2%, reflecting the smaller Entrepo lending book and weaker lending in Botswana.Its net interest margin narrowed to 4.8%, from 5.1% previously, while credit impairments increased by 45.1% to N$457 million.However, PSG cautioned that the deterioration in Capricorn's credit-risk indicators was largely driven by its Botswana operations, particularly Bank Gaborone, rather than its Namibian business.Standard Bank and NedNamibia have meanwhile emerged as important growth competitors.Standard Bank's three-year compound annual growth rate in gross advances was 10.3%, the highest among the four Namibian banking groups.NedNamibia's three-year growth rate stood at 9.7%, compared with 6.3% for FirstRand and 2.8% for Capricorn's Namibian operations.The figures point to a changing competitive environment in which market leadership is increasingly being challenged by lenders expanding their loan books.However, rapid lending growth does not necessarily translate into stronger profitability. Banks must also manage the cost of funding, the quality of their borrowers and the capital required to support additional lending.PSG's assessment illustrates this distinctionAlthough NedNamibia recorded the fastest one-year lending growth, it had the highest non-performing loan ratio among the four groups, at 7.2%.Standard Bank, on the other hand, recorded an NPL ratio of 5.4%, while FirstRand had the lowest at 4%.Capricorn's group-level NPL ratio stood at 5.6%, although its Namibian operations recorded an improved ratio of 3.8%.The report also highlights differences in the banks' profitability and operational efficiency.FirstRand retained its position as the most cost-efficient banking group, with a cost-to-income ratio of 48.5%, compared with 54.5% for Standard Bank, 59.9% for NedNamibia and 52% for Capricorn.The ratio measures how much a bank spends to generate its operating income, with a lower figure generally indicating greater efficiency.In PSG's overall financial-performance ranking, FirstRand retained first place with a score of 2., followed closely by Standard Bank at 2.1.NedNamibia ranked third at 2.9, while Capricorn fell to fourth place at 3.The rankings reflect a notable shift for Capricorn, which had consistently occupied one of the top two positions in most of the years covered by PSG's assessment.Standard Bank's second-place finish was its strongest performance in the 2016–2026 series.The competitive picture is also being shaped by changes in the economic environment, with banks facing higher inflation, rising interest rates and tighter regulatory requirements.PSG expects funding costs, deposit composition and credit quality to become increasingly important determinants of bank profitability in the year ahead.

FNB overtakes Capricorn as biggest lender

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Republikein 2026-11-16

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FNB overtakes Capricorn as biggest lender

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Republikein 2026-11-16

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