DESPITE 2016 having been a year of stagnation for most business activities, Standard Bank proved resilient and posted profit after tax of up to N$540 million.
Reflecting on this surge, Vetumbuavi Mungunda Chief Executive of Standard Bank Namibia noted that the bank had made this possible by making great strides towards transforming its operational environment, operational processes, products and operational structures.
“During 2016, Standard Bank not only reaffirmed our commitment to understanding and meeting our customers’ needs, but we started to implement a revolutionary programme aimed at changing the culture and ways of work in the bank with the objective of improving our processes and products from a customer’s perspective,” he stated
The bank also reported a reduction in turnaround times for Home Loans from 170 days in 2014 to 51 days in 2016 and an increase in market share for Vehicle and Asset Finance to over 27 percent from below 25 percent in 2015. The Bank has continued to stabilise its Information Technology systems and channels during the course of the year following focused initiatives and actions implemented. Technology optimisation and innovation remained a high priority during 2016 with the successful launch of the BlueWallet, refreshed online banking platform, the SmartApp and the EMV debit cards.
Mungunda added that: “We continued with investments in the expansions of our points of representation in our quest to bring our services closer to our customers. We opened four new points of representation across the country these including Ruacana, Okuryangava, the Waterfront in Swakopmund and Okongo. We upgraded the Keetmanshoop, Nkurenkuru, Otjinene and Game Shopping Centre branches to enhance customer experience. We further relocated a number of our points of representation into new refurbished facilities in Gobabis, Eenhana and Aussenkehr signifying our commitment and trust in the future of these towns.”
The continued focus and high performance culture saw Standard Bank Namibia being acknowledged through the prestigious awards received during the year. Standard Bank was awarded as the Best Investment Bank in the country for 2016, Best Emerging Markets Bank in Namibia and Best Sub-Custodian Bank in Namibia.
Bryan Mandy, Chief Financial Officer and Finance Director of Standard Bank Namibia reported that: “Standard Bank generated profits for the year amounting to N$540 million and representing a growth of three percent above the prior year. The current year results are satisfactory in the current macro-economic environment.”
The current year results were impacted by interest expense growth of 21 percent, which was significantly higher than the 12 percent growth in interest income. The increase in interest expense was driven by the increasing costs of funds and liquidity holdings, as well as divergence in the correlation between local prime interest rates and JIBAR rates from which most of the local liquidity costs are derived from.
The results were further impacted by once-off systems implementation related costs amounting to N$54 million written-off during the current year.
”As a responsible organisation we realised this expense now to ensure long term sustainability,” he added.
Normalised earnings, excluding these once-off written-off costs would show a growth of 14.3 percent on the 2015 earnings. We are pleased to report that our results for 2016 were supported by growth in quality assets at 12 percent over the prior year. The growth in loans and advances to customers of 11 percent is pleasing when compared to the industry growth of 8.9 percent for the year.
The banks’ capital position continues to exceed regulatory capital thresholds at 15.35 percent capital adequacy and 8.76 percent leverage ratios respectively.
Confidente. Lifting the Lid. Copyright © 2015