BANK Windhoek concluded its financial year ended June 30 2012 with a net profit before tax of N$509 million, 25 per cent more than in its previous book year.

Total assets jumped from N$15,7 billion to N$18.6 billion during the period under review, Bank Windhoek said in a statement yesterday.

Managing director Christo de Vries said the bank's positive performance can be attributed to, among others, controlled asset growth, effective management of credit and continued focus on efficiencies.

Gross advances increased by N$2,5 billion, representing a growth of 19 per cent over the previous year, primarily as a result of the increase in mortgage loans and asset backed finance portfolios, Bank Windhoek said.

Bad debts as a percentage of gross advances was "an acceptable low level of 0,2 per cent".

Bank Windhoek's operating expenses grew by 10,6 per cent compared to the growth of 12 per cent in the previous year. "This focused effort to contain cost is evident in the reduction in the cost to income ratio from 58 per cent in the previous year to 55 per cent," Bank Windhoek said.

Due to the increased importance of capital requirements, the management thereof remained a key focus area, the bank said. The risk weighted capital ratio decreased from 13,2 per cent to 12,4 per cent, still above the 10 per cent statutory requirement.

Dividends of N$110 million were declared and paid during the financial year, Bank Windhoek said.