6 September 2010

Namibia: Bank Reports Profit of N$247.4 Million

Windhoek — Bank Windhoek on Monday this week announced its 2009/2010 financial results for the year ended 30 June 2010. The bank reported a net profit of N$247.4 million, which is an increase of 18% over the previous year.

The bank increased its net interest income by 14%. The market took a keen interest in the Bank's Negotiable Certificate of Deposits, resulting in an increase of N$2 billion in this particular funding product.

As part of the recovery and rehabilitation process after the global recession, there has been a concerted effort by the bank to focus on the quality of loans and advances. As a result of this, the impairment charge through the income statement has been contained at 0.2% of gross loans and advances, which is an exceptional performance measured by any standards.

The bank's total assets grew by 16%, which is underpinned by the growth in gross loans and advances of 16% as well as increasing market share to over 30%. Meanwhile, the total risk-based capital ratio decreased from 13.6% in the previous year to 12.6% in the current year, still above the required statutory levels.

As a result of the financial crisis, interest rates reduced rapidly during the previous financial year. Wholesale funding rates decreased during the period under review and long-term fixed rate funding required for liquidity purposes in the previous period matured and was re-deposited at current market rates.

According to James Hill, the managing director of Bank Windhoek, the 2009/2010 financial year is characterised by many highlights.

"The launch of our service charter is tacit proof of our commitment to offer quality service to our clients, through our service values of friendliness, helpfulness, empathy, professionalism, competency and efficiency. "Our strong focus on the entrenchment of our service charter inside the organisation will remain a key strategic objective, as we believe that in a competitive environment like banking, it is often the level of service quality that differentiates us from the rest.

"The establishment and launch of Bank Windhoek's new 24 hour Customer Contact Centre in June 2010 further enhances our ability to improve our ser-vice to clients," Hill said.

He explained that the bank has been on a steady growth path and succeeded year on year to surpass shareholder's expectations in a very competitive environment since the establishment of the bank in 1982.

He added that the financial institution now has the largest retail branch, and ATM network, and is the second largest bank in Namibia with total assets of N$14 billion as at 30 June 2010.

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