FNB Namibia Holdings earnings decline

THE First National Bank of Namibia Holdings Limited has released its results for the year ended June 30 2004, with earnings attributable to ordinary shareholders having decreased to N$165,1 million compared to N$204,9 million in the previous year.

In terms of earnings, the group said it had a relatively flat year as the interest margins were under pressure with a five per cent reduction in the prime rate throughout the year. The decrease in earnings was attributed to the tax benefit of N$80,1 million that had an effect of a reduced tax charge of 5,3 per cent, and shareholders were advised to consider “core operational earnings” as a more meaningful measure of true sustained performance.The core operational earnings increased by 9,5 per cent to N$274,3 million for the year ended 30 June 2004.The group net asset value however exceeded N$1 billion and total group assets being in excess of N$7,2 billion.The results relate to the consolidated financial results of FNB Namibia Holdings Limited and its subsidiaries.FNB Namibia Holdings Limited, is a company that was created out of the merger of FNB Namibia and Swabou, last year.The company is listed on the Namibia Stock Exchange.FNB said the current year’s financial statements and associated ratios relate to the performance of the merged group, whereas those for the prior year represent FNB Namibia Limited only.According to FNB, the results for the year ended 30 June 2004 are therefore not directly comparable to the previous year.FNB home loans surpassed the N$3 billion target in total assets financed, representing 45 per cent of the Namibian home-loan market share.According to a press statement from FNB, the group has been engaged in intense internal focussing because of the merger that is the successful consolidation of people, systems and costs had to be monitored vigilantly to seal the post-merger integration process.It also said this was now complete and despite its teething problems, all was now functioning as a unit.Following a period of consolidation, the group says it is now well positioned to take advantage of economies of scale achieved through rationalisation and at the same time explore value enhancing opportunities and synergies offered by the broader-based financial services Group.”These results can be translated as the foundation for growth of the FNB Namibia Holdings Group,” read a press statement from FNB.The decrease in earnings was attributed to the tax benefit of N$80,1 million that had an effect of a reduced tax charge of 5,3 per cent, and shareholders were advised to consider “core operational earnings” as a more meaningful measure of true sustained performance. The core operational earnings increased by 9,5 per cent to N$274,3 million for the year ended 30 June 2004.The group net asset value however exceeded N$1 billion and total group assets being in excess of N$7,2 billion.The results relate to the consolidated financial results of FNB Namibia Holdings Limited and its subsidiaries.FNB Namibia Holdings Limited, is a company that was created out of the merger of FNB Namibia and Swabou, last year.The company is listed on the Namibia Stock Exchange.FNB said the current year’s financial statements and associated ratios relate to the performance of the merged group, whereas those for the prior year represent FNB Namibia Limited only. According to FNB, the results for the year ended 30 June 2004 are therefore not directly comparable to the previous year.FNB home loans surpassed the N$3 billion target in total assets financed, representing 45 per cent of the Namibian home-loan market share.According to a press statement from FNB, the group has been engaged in intense internal focussing because of the merger that is the successful consolidation of people, systems and costs had to be monitored vigilantly to seal the post-merger integration process. It also said this was now complete and despite its teething problems, all was now functioning as a unit.Following a period of consolidation, the group says it is now well positioned to take advantage of economies of scale achieved through rationalisation and at the same time explore value enhancing opportunities and synergies offered by the broader-based financial services Group.”These results can be translated as the foundation for growth of the FNB Namibia Holdings Group,” read a press statement from FNB.