WINDHOEK: Bank Windhoek achieved a net profit of N.dollars 509 million before tax in the 2011/2012 financial year, representing a 25 per cent growth from the previous year.
A media statement announcing the bank’s financial results for the 2011/2012 financial year as issued by the bank on Friday said their total assets increased from N.dollars 15.7 billion to N.dollars 18.6 billion over the same period.
The financial year ended on 30 June 2012.
“This positive performance comes in the year that Bank Windhoek celebrates 30 years of independent banking. The performance reported on in the bank’s annual report is a result of the dedication, hard work and commitment of our staff, the leadership of Bank Windhoek’s Board and management, and the continued loyalty of our clients,” the bank’s Managing Director (MD), Christo de Vries was quoted as saying.
He added that the positive performance can also be attributed to controlled asset growth, effective management of credit and the continued focus on efficiencies.
The period under review was characterised by low volatility in the interest rate markets, while the currency markets proved more volatile than the previous year.
The worldwide economic environment remained under pressure as a result of the impact of the recession experienced in the last few years.
The recession did, however, not have a major impact on the economy of Namibia, and this, as well as the stable and less volatile interest rate environment, impacted positively on Bank Windhoek’s financial results.
After experiencing significant recovery and growth of 6.6 per cent in 2010, the Namibian economy continued to perform well in 2011, with growth of 4.9 per cent, while much of the world experienced growth levels of under two per cent.
“In the year ahead, there will be continued uncertainty in the global economic environment, and with increased regulation on capital and liquidity requirements, it will remain a challenging environment in which to responsibly navigate and grow our business,” De Vries stated.
He noted that Bank Windhoek will continue to focus on risk management to identify and address internal risks arising from the operations of the bank, as well as external risks arising from the external environment in which the bank operates.
The continued prudent credit risk management principles applied contributed to the attainment of an acceptable low level of 0.2 per cent bad debts as a percentage of gross advances.
The MD explained that the bank’s operating expenses grew by 10.6 per cent, compared to growth of 12.0 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 financial year to 55 per cent.
The staff headcount, which continues to be the largest contributor to operating expenses, was also well-contained due to productivity improvement programmes.
De Vries further stated that various initiatives within the technology environment were initiated to ensure sustainable efficiencies and improved customer service.
Furthermore, gross advances increased by N.dollars 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 of the bank.
Due to the increased importance of capital requirements, the management thereof remained a key focus area, and 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.dollars 110 million were also declared and paid during the financial year.