FNB earns nearly N$2bn in charges

FNB Namibia has made nearly N$8,3 billion from interest and similar income during the past nine years.

During the same time however, clients earned only N$4,1 billion in interest on current accounts, saving and term deposits and other interests.After-tax profits for the same period amounted to N$2,2 billion.According to the 2009 annual report, FNB Namibia earned nearly N$1,6 billion in interest and similar income for the financial year ended 30 June, which is 6,7 per cent more than last year.The bulk of this, about N$1,4 billion, came from advances, which grew by two per cent compared to 2008.Interest paid to clients amounted to N$839 million this year, an increase of 8,3 per cent over last year.Of this, about N$353 million were paid as interest on current accounts, nearly eight per cent more than in the previous financial year. Saving deposit clients were awarded with N$11,7 million in interest, a growth of about three per cent.The group’s profit for the year fell by ten per cent to N$367 million, ‘mainly as a result of a squeeze on interest margins and equity losses incurred by Swabou Life on the shareholders’ investment portfolio’, FNB Namibia Group Chief Financial Officer Erwin Tjipuka said.The annual report shows that FNB Namibia banked nearly N$376 million from fees and commission income this year, about 26 per cent more than in 2008.Cash deposit fees brought in N$54,5 million (2008: N$41,5 million), while service fees earned the bank N$144 million (2008: N$130 million).This represents an increase of 31 per cent and 11 per cent respectively.The migration of the credit card book from First National Bank South Africa to FNB Namibia in November last year resulted in card commission income jumping by more than 1 600 per cent to N$31,4 million.Tjipuka said only five per cent of income earned from fees and commissions is due to price increases.Furthermore, penalty fees – costs clients could avoid – in the banking group fell by 28 per cent, ‘a pleasing change in consumer behaviour’, he said.jo-mare@namibian.com.na