WINDHOEK, 10 September 2021: FirstRand Namibia Limited announced its financial results for the year ending 30 June 2021, reflecting an extremely difficult operating environment, with normalized earnings decreasing.
Oscar Capelao, FirstRand Namibia Chief Financial Officer commented: “Post the beginning of lockdown in March 2020, underlying customer income and affordability in all segments deteriorated sharply, as evidenced by lower levels of underlying transactional and credit turnover and the increase in non-performing loans.”
“At the same time, our clients, employees, and broader society suffered sustained, complex personal challenges and many loved ones were lost to the pandemic. At FirstRand Namibia we share their grief and are saddened by the numerous members of our own FirstRand Namibia family too, that passed away over this period through COVID-19-related illnesses. We extend our condolences to all families who lost loved ones,” said Conrad Dempsey, CEO: FirstRand Namibia.
“The group’s steady performance over the period is partly attributed to the pandemic impact driving necessary innovative and holistic relief programmes aimed at helping customers, including the Cashflow Relief programme, support to SME’s and larger businesses to continue to cover costs and salaries, as well as numerous waivers of fees and restructurings of loans”, continued Dempsey.
Direct financial support to entities engaged in fighting the pandemic’s spread doubled the groups’ community investment over the period into health care worker protection, hospital equipment, oxygen delivery support and more recently vaccines transport and distribution across the country.
“FNB Namibia’s digital banking platforms have also contributed to its brand value growth. As a purpose-led brand FirstRand Namibia continues to push and redefine boundaries on what help means to customers and society. “We play a pivotal role in our customers’ lives by empowering them through relevant and meaningful contextual solutions. Help is therefore central to everything we do”, he adds.
“The Covid-19 pandemic has accelerated our plans to design, implement and improve the nature of our financial and non-financial support to our customers and vulnerable communities. We continue to respond purposefully and empathetically to calls for help by assisting customers through a range of relief measures to help keep their heads above the water in the midst of a pandemic”, noted Dempsey at the results broadcast. 10 September 2021.
An overview of the FirstRand Namibia group’s performance is as follows:
- Total deposits were N$36 billion, down from N$38 billion in the previous year
- While total advances stayed steady at N$30 billion.
- The ordinary dividend declared for the end of 2021 is 118 cents per share, combined with the interim dividend of 94 cents, totalling 212 cents per share – compared to the total dividend of 154 cents in 2020
- Assets under management grew from N$14 billion in 2020 to N$15 billion.
- While Tier 1 Capital was recorded at 17.7% compared to 15.9% in 2020.
- Customer Satisfaction Scores came in higher than in 2020, speaking to an increased appreciation for the use of easy digital and alternative channels countrywide -allowing customers to bank better and save more.
- In terms of digital innovations, FirstRand Namibia remains the market leader – showing strong growth in headline earnings at N$1 023 million, compared to N$867 million in 2020.
“For FirstRand Namibia, the economic impact of COVID-19 will continue to place acute pressure on the Group’s performance for the rest of the 2021 calendar year. However, trends are improving post-lockdown even as economic recovery slowly emerges, and we remain hopeful that the remaining year will be better for Namibia and its people and the world at large,” says Capelao.
“Globally, economies and societies are starting to emerge from the pandemic. In some countries, post-pandemic life is becoming a reality, with swift economic recovery creating new jobs. This view of life on the other side inspires us and our partners to step up and rebuild lost capacity to ensure that Namibia keeps in step with the global recovery,” ended Dempsey.
Full Results are available on www.fnbnamibia.com.na