FNB records 26 per cent pre-tax profit

FIRST National Bank Namibia Holdings (FNB) has announced improved earnings for the period ended June 30 2005, recording a profit growth of 26 per cent before tax.

Group Chairman Hans-Dietrich Voigts says the bank delivered on all its 2005 targets. Earnings attributable to ordinary shareholders increased by 43 per cent to N$211 million from N$165 million in the same period last year, while headline earnings increased from N$164 million to N$204 million.Income from banking operations, which make up 91 per cent of the Group’s income, rose to N$280 million during the period under review from N$223 million.The other sources of income are life assurance (seven per cent) and short-term insurance (two per cent).Total assets grew by 14 per cent to hit N$8,2 billion while the Group’s net asset value per share went up to 433 cents compared to 401 cents in 2004.The annual report includes the results of the Swabou Group of Companies following the merger between the two institutions.The improved results were attributed to cross-selling on credit extension, investment returns, policyholder benefits and operating expenses, which also saw the embedded value grow to N$155 million.The home-loan market grew by 23,5 per cent in the past 12 months, and FNB said despite fierce competition in the area, the bank managed to maintain its market share at 45 per cent.Voigts said FNB managed to deliver on all its targets of improved profitability, economies of scale, structural growth, cross-selling and preference shares.Consolidations and mergers had a positive impact on the Group’s annual financial results.Five per cent of the Group was allocated to a Black Economic Empowerment transaction and Voigts said this was part of FNB’s strategic initiatives.Four per cent was taken by a BEE consortium while one per cent of the shareholding went to black staff and non-executive directors.The BEE consortium is made up of Sovereign Capital and Chappa’Ai Investments.Said Voigts: “The conclusion of the BEE transaction was one of the last processes after the merger with the Swabou Group, and fulfilled one of the Group’s strategic goals.”Before the presentation of the annual results at a meeting yesterday, a moment of silence was observed for the late FNB Chief Executive Officer Lazarus Ipangelwa, who passed away this month.His CEO statement is included in the annual report.Earnings attributable to ordinary shareholders increased by 43 per cent to N$211 million from N$165 million in the same period last year, while headline earnings increased from N$164 million to N$204 million.Income from banking operations, which make up 91 per cent of the Group’s income, rose to N$280 million during the period under review from N$223 million.The other sources of income are life assurance (seven per cent) and short-term insurance (two per cent).Total assets grew by 14 per cent to hit N$8,2 billion while the Group’s net asset value per share went up to 433 cents compared to 401 cents in 2004.The annual report includes the results of the Swabou Group of Companies following the merger between the two institutions.The improved results were attributed to cross-selling on credit extension, investment returns, policyholder benefits and operating expenses, which also saw the embedded value grow to N$155 million.The home-loan market grew by 23,5 per cent in the past 12 months, and FNB said despite fierce competition in the area, the bank managed to maintain its market share at 45 per cent.Voigts said FNB managed to deliver on all its targets of improved profitability, economies of scale, structural growth, cross-selling and preference shares.Consolidations and mergers had a positive impact on the Group’s annual financial results.Five per cent of the Group was allocated to a Black Economic Empowerment transaction and Voigts said this was part of FNB’s strategic initiatives.Four per cent was taken by a BEE consortium while one per cent of the shareholding went to black staff and non-executive directors.The BEE consortium is made up of Sovereign Capital and Chappa’Ai Investments.Said Voigts: “The conclusion of the BEE transaction was one of the last processes after the merger with the Swabou Group, and fulfilled one of the Group’s strategic goals.”Before the presentation of the annual results at a meeting yesterday, a moment of silence was observed for the late FNB Chief Executive Officer Lazarus Ipangelwa, who passed away this month.His CEO statement is included in the annual report.