Nampost financial broker PostFin said since last year it has issued 12 868 loans worth N$618 million.
This is contained in the NamPost’s annual report for the 2021/2022 financial year.
According to the report, the number of loans issued has increased from 11 185 in 2021.
Patrick Gardiner, the chief executive officer of PostFin, said PostFin is a reputable micro-lender. It offers services to permanently employed customers with Visa SmartCards, government employees and pensioners who might experience difficulties securing micro-loans from formal institutions or other non-reputable parties in rural areas.
“PostFin provides pensioners with unsecured finance to assist them in living a dignified life or bettering their children’s or grandchildren’s lives,” Gardiner said.
He added that PostFin helps create green shoots of economic hubs in rural areas, adding that the loan criteria are limited to small amounts, with a robust credit policy to ensure the prudent allocation of loans.
According to him, PostFin has been a profitable contributor to NamPost’s revenue since 2014.
“Our retained earnings in 2022 are at N$92,8 million. The net impairment rate after recoveries deteriorated only to 2,4% from 2%, despite the strained economic conditions.
He said PostFin’s profit before tax increased by 24% to N$24,8 million, while in 2021 it was N$20 million.
“The return on investment (ROI) for PostFin was 112,50%, with a return on equity (ROE) of 16,98%, based on profit after tax and ROE of 24,97% based on Profit Before Tax,” Gardiner said.
He said the expenses-to-income ratio was 34,03%, with human resources costs reflecting a ratio of 21,37% of total income.
“Hollard remains the insurance underwriter of the credit life cover offered by PostFin. This covers the customer’s loan repayments in the event of death,” he said.
The micro plus offering pays out an additional amount to beneficiaries in addition to the loan repayment.
Gardiner said PostFin contributed N$45,2 million in insurance premiums (net of commission) over the past financial year to the NamPost/Hollard joint venture.
Besides its capital, PostFin’s funding is from the German Development Bank, Kreditanstalt für Wiederaufbau (KfW) and the French Development Bank, Agence Française de Développement (AFD), at fixed interest, Gardiner said.
“The recovery in the banking prime rate translated into a 1,25% gain. Inversely, interest rate hikes meant we had to decline more loans on affordability criteria than in previous years as responsible lenders,” Gardiner stated.
According to Gardner, PostFin funding with KfW ended in February 2021, and they have been using PostFin reserves in the interim.
However, he said, they are renegotiating funding with both existing funders at favourable terms.
“As a risk-intense industry, we regularly update our risk profile management system and report to the board every quarter to maintain high risk awareness and mitigation levels,” he added.
According to the report, NamPost handled approximately 10,2 million mails, as well as 1,4 million courier waybills.
It reported that 60 588 customers are now using NamPost’s visa smartcards. The post paid N$84,1 million in taxes to the government in 2020/2021 financial year.
NamPost chief executive officer Festus Hangula, in the report, said that the group revenue increased by 3,7% to N$981 million, while in 2021 it was N$945 million.
According to Hangula, the operating expenses increased by 0,2% to N$493 million while in 2021 it was N$492 million, and profit before tax increased by 64% to N$89 million.
“NamPost continues to create significant value for our shareholders, and the Namibian society. Despite the subdued economy, the group continues to serve our customers in ways relevant to their unique needs,” he said.
He said that NamPost is taking strategic steps to ensure it remains resilient and innovates to safeguard future growths.
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