The NedNamibia Holdings (NNH) Group delivered strong headline earnings growth of 104% in the first half of its financial year.
This was reported in their condensed six-month financial results for 2023 yesterday.
The declared headline earnings are N$241 million, an increase from the N$118 million recorded in the same period last year.
“This increase was mainly attributed to the upward trend in the endowment benefits experienced over the 12-month period as regulators worldwide continued their fight against inflationary pressures,” says SI Kankondi, the chairperson of the board.
The cost-to-income ratio was recorded at 57%, down from the 71% reported for 2022.
Overall cost increased year on year by 3%.
Kankondi said the cost of staff remains the biggest component of the total expenses, having grown by 4% year on year.
Non-interest income went up quite steeply to N$202 million, from N$186 million recorded at the same time in 2022.
This is mainly driven by an increase in client activity.
Net interest income was posted at N$463 million, 30% up from N$358 million, which is largely due to the increased interest rate.
The financial results also showed that Nedbank Namibia’s total capital ratio was at 17,78%, while net value on assets hovered around 4,412c/share.
Nedbank also contributed N$406 000 towards their corporate social responsibility and raised a total of N$645 000 through the vehicle and property finance transaction for the Nedbank Go Green Fund.
“Our commitment to technological advancement has propelled us forward, and we have recorded that 60% of clients are now digital,” said Kankondi.
Digitally active clients went up from 46% in 2022 to 60% in 2023.
“As we look ahead to the second half of the year, we will continue to focus on growing our loans and advances,” he said.