FNB half-year results good
FNB half-year results good

FNB half-year results good

An interim dividend for the six months ended 31 December 2016 of 91 cents per ordinary share was declared on 31 January 2017.
Staff Reporter
FNB Namibia Holdings' half-year results were released this week in the context of an embattled economy.

Previously flourishing on pro-cyclical fiscal spending and foreign investment in new mines and infrastructure, the Namibian economy is facing severe headwinds that include a current economic growth forecast for 2016 which has been revised downwards by government and most research houses.

“For the period under review, the economy was challenged by lower commodity prices, severe drought conditions, weaker global and regional growth, and a sudden slump in the construction and manufacturing sector.

FNB Namibia Holdings' performance for the six months ended 31 December 2016 reflects the impact of the macroeconomic environment,” said Oscar Capelao, chief financial officer at FNB Namibia Holdings.

While the Namibian group's local investment continued at full commitment, rising costs and falling incomes in real terms affect normally high returns to stakeholders and shareholders.

FNB's core operations have performed well over the period with active accounts up by 9%, Electronic channels, such as eWallets showing growth of 44% and point-of-sale transactions growing by 12%, and advances growth of 8.4%.

However, performance was affected by the increased cost of funding in the current tighter liquidity environment and investment in risk management.

Profit for the half-year was N$599.2 million, compared to N$597.4 million in 2015: Earnings per share were flat at 226.3 cents compared to 2015's 226.5 cents.

Other key ratios reflect a similar trend. Return on average equity was 30.3% compared to 35.4% in 2015, return on average assets at 3.5% (2015: 3.9%) and cost-to-income ratio at 46.3% (2015: 42.4%).

The return on average equity at 30.3% is closer to the five-year, long-term average of 29%, according to Capelao.

An interim dividend for the six months ended 31 December 2016 of 91 cents per ordinary share was declared on 31 January 2017.

Said Sarel van Zyl, CEO at FNB Namibia Holdings: “While we anticipate operating conditions to become more demanding - in both the economic and regulatory environment, we believe our strong balance sheet, diversified earnings base and innovative customer solutions and service will work together to deliver a continued solid and sustainable performance.”

STAFF REPORTER

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Namibian Sun 2024-11-25

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