Listed SBN declares first dividend
Jo-Maré Duddy – The broader public, as shareholders of Standard Bank Namibia, will be rewarded in May when the locally-listed group pays out its first dividend of 27c per share since listing on the Namibian Stock Exchange (NSX) in November.
In total, Standard Bank Namibia (SBN) will pay dividends of N$143 million, N$23 million or about 19% more than in 2018.
Following its listing on the Local Index of the NSX last year, the general public owns 25.1% of the issued share capital of SBN. This includes employees of SBN through the institution’s staff share scheme. The Standard Bank Group owns the remaining 74.9% of SBN.
Announcing its first financial results as a locally-listed company yesterday, SBN described its performance as “remarkable … despite a very challenging domestic economic environment”.
The group reported a profit of nearly N$613.5 million for the year ended 31 December 2019. This is an increase of about N$61 million or 11% compared to the previous book-year.
Credit impairments
The group’s credit impairments skyrocket by 150% or nearly N$143.6 million to around N$239.2 million.
The chief executive of SBN, Vetumbuavi Mungunda, in the group’s annual report said the significant increase reflect “the current macroeconomic environment, as well as a significant provision raised in respect of one sector in the first half of the year”.
SBN’s chief financial officer, Letitea du Plessis, in the report said the credit loss ratio (CLR) increased from 0.5% to 1.0%, but has improved from June 2019 when it was recorded at 1.55%. The increase also relates to an IFRS 9-related accounting change, she said.
Mungunda said Namibia’s “macroeconomic environment has continued to present major challenges for the credit environment, with a number of the key sectors for the country not growing for a number of years and with employees being retrenched in these sectors”.
“This difficult environment is reflected in our credit performance ratios, with non-performing loans increasing from 3.46% in 2018 to 5.93% of our loan book at end December 2019. However, when the impact of one large provision is excluded, the non-performing loans ratio would be 3.86%, which is a reasonable increase in the current economic cycle,” he said.
Figures
SBN’s net interest income for the period under review rose by 9.2% to exceed N$1.3 billion. Non-interest income increased by 12.2% to about N$1.26 billion
Operating expenses were 2.5% higher and totalled nearly N$1.5 billion.
The group’s total loan book grew to about N$25.6 billion. Loans and advances to customers rose by 4.4% to nearly N$22.8 billion, while loans and advances to banks were 73.7% higher at about N$2.8 billion.
Basic earnings per share (EPS) and headline earnings per share (HEPS) of 122c were reported, up 12c or nearly 11% compared to the 2018 financial year.
Mungunda said the macroeconomic environment is expected to remain subdued with low growth in 2020.
“This environment requires cost-efficient channels to deliver services and to provide solutions to our clients’ needs,” he said.
In total, Standard Bank Namibia (SBN) will pay dividends of N$143 million, N$23 million or about 19% more than in 2018.
Following its listing on the Local Index of the NSX last year, the general public owns 25.1% of the issued share capital of SBN. This includes employees of SBN through the institution’s staff share scheme. The Standard Bank Group owns the remaining 74.9% of SBN.
Announcing its first financial results as a locally-listed company yesterday, SBN described its performance as “remarkable … despite a very challenging domestic economic environment”.
The group reported a profit of nearly N$613.5 million for the year ended 31 December 2019. This is an increase of about N$61 million or 11% compared to the previous book-year.
Credit impairments
The group’s credit impairments skyrocket by 150% or nearly N$143.6 million to around N$239.2 million.
The chief executive of SBN, Vetumbuavi Mungunda, in the group’s annual report said the significant increase reflect “the current macroeconomic environment, as well as a significant provision raised in respect of one sector in the first half of the year”.
SBN’s chief financial officer, Letitea du Plessis, in the report said the credit loss ratio (CLR) increased from 0.5% to 1.0%, but has improved from June 2019 when it was recorded at 1.55%. The increase also relates to an IFRS 9-related accounting change, she said.
Mungunda said Namibia’s “macroeconomic environment has continued to present major challenges for the credit environment, with a number of the key sectors for the country not growing for a number of years and with employees being retrenched in these sectors”.
“This difficult environment is reflected in our credit performance ratios, with non-performing loans increasing from 3.46% in 2018 to 5.93% of our loan book at end December 2019. However, when the impact of one large provision is excluded, the non-performing loans ratio would be 3.86%, which is a reasonable increase in the current economic cycle,” he said.
Figures
SBN’s net interest income for the period under review rose by 9.2% to exceed N$1.3 billion. Non-interest income increased by 12.2% to about N$1.26 billion
Operating expenses were 2.5% higher and totalled nearly N$1.5 billion.
The group’s total loan book grew to about N$25.6 billion. Loans and advances to customers rose by 4.4% to nearly N$22.8 billion, while loans and advances to banks were 73.7% higher at about N$2.8 billion.
Basic earnings per share (EPS) and headline earnings per share (HEPS) of 122c were reported, up 12c or nearly 11% compared to the 2018 financial year.
Mungunda said the macroeconomic environment is expected to remain subdued with low growth in 2020.
“This environment requires cost-efficient channels to deliver services and to provide solutions to our clients’ needs,” he said.
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