FNB Namibia Holdings increased its net interest income by 28 percent from N$1.138 billion in 2014 to N$ 1.452 billion in 2015 while profit after tax amounted to N$999 million vs N$785 million in 2014, representing a growth of 27 percent. This is according to the group’s financial results for the year ended June 30, 2015.
Earnings per share also increased to 377.5 cents from 257.7 cents. The return on average equity rose to 32.2 percent in FY 2015 from a 30.9 percent in 2014, while the return on average assets was 3.6 percent from 3.2 percent in 2014.
“On the assets side, the 2015 group’s total assets grew by 13.4 percent to N$29.8b, while year-end advances making up 76 percent of the balance sheet, reflected a year-on-year increase of 14.2 percent to N$22.8b. Average advances grew by 16 percent,” said FNB’s Chief Financial Officer (CFO), Oscar Capelao.
Capelao shared more highlights, such as the fact that 78 percent of FNB Namibia’s income was retained in Namibia. “Only N$292 million (22 percent) of the roughly N$1.5 billion pre-tax profits in 2015 flowed to non-Namibian shareholders.”
Further, home loans exceeded N$10bn, up from N$2.5 bn in 2003, while RMB approved N$3.5bn worth of transactions in the past financial year and OUTsurance policy holders increased to 26 714 from 21 186 in 2011. “More than N$18 million has been paid out in OUTbonuses since inception, he added.”
“The contribution we continue to make to stakeholders is substantial, as FNB’s profitability creates wealth for stakeholders,” FNB Group CEO Sarel van Zyl said. He noted that the Group’s value-added statement demonstrated this as N$644 million was spent on salaries (2 164 employees) and other benefits to employees, while government received N$488 million in tax and shareholders walked away with N$359 million in dividends.
“N$7.7 million was spent on CSI initiatives, as well as sponsorships and donations over the last financial year, benefitting a wide range of Namibians all over the country in various projects such as education, health, community, environment, skills, art and culture and sport.”
Van Zyl said, “Value to shareholders can be measured by considering share price appreciation and dividend payments.
Based on the closing share price of N$32.78 on 30 June 2015, a shareholder who purchased a single FNB Namibia Holdings share on 1 July 2014 at N$23.16 would have gained N$9.62 in capital appreciation, an increase of 42 percent. With the ordinary dividend of N$1.83, this equates to a return on investment of 49 percent over the year.”
FNB has 2 556 registered shareholders of which 2 439 are Namibians. They own almost 104 million shares, valued at more than N$3.4 billion at June 30, 2015. “Indirectly, through the various investments by Namibian pension funds in FNB Namibia Holdings shares, a broad spectrum of the Namibian population has an interest in the company.”