Interest Income Drives Standard Bank Growth

STANDARD Bank Namibia profits after tax increased by 6% to N$ 319 million in the financial year ended 31 December from N$301 million the previous year, according to the latest financial statements. Assets grew by 11%.

Total income grew by 14% and expenses went up 1,7%, which it said reflected the investment made in the localisation of systems.

Net income grew by 16% and non-interest revenue by 12%. The bank said net income growth was achieved despite a moderate customer loan growth of 7%.

“Continued repricing of the residential mortgage portfolio, the product mix benefit resulting from growth in higher margins, unsecured lending, and focused monitoring of funding costs resulted in further margin expansion,” the statement indicated.

The statement shows that trading revenue grew by 29% due mainly to a string performance from currency trading during the year.

On economic prospects, the bank said only a mild improvement to 5% growth is expected for Namibia, assuming some negative impact from higher interest rates and subdued consumer demand.

“Competition is high in all markets we serve and business operating environments remain challenging,” the bank said.

Source : The Namibian