INFORMANTÉ informs: BANK WINDHOEK HOLDINGS LIMITED ANNOUNCES FINANCIAL RESULTS FOR PERIOD ENDING 30 JUNE 2013 Bank Windhoek Holdings Limited (BWH) released the group’s condensed consolidated financial statements for the period ending 30 June 2013 on 15 August 2013. “BWH can report on another year of continued solid performance, delivering a 17th consecutive year of growth in income and profit from operations. This is underpinned by controlled asset growth, prudent risk and capital management and continued focus on efficiencies”, said Christo de Vries, Managing Director. BWH delivered satisfactory results for the year ended 30 June 2013, exceeding the half billion Namibia Dollar mark in total comprehensive income for the first time: • Group total comprehensive income for the year amounted to N$516 million, which represents a 24% increase on the prior year; • Sound balance sheet growth was achieved with asset growth of 10,7% to N$20,9 billion; • The group is well capitalised with a Core Tier I capital ratio of 13.2%, well above the minimum statutory requirement of 7%; and • A normalised return on average equity of 23.7% was realised. Net interest income increased by 16.8% to N$914 million (2012: N$783 million). Credit management remains a key focus, coupled with prudent risk pricing and good recoveries of delinquent debt. During the year under review the loan loss rate decreased from 0.18% to 0.16% and non-performing loans as a percentage of gross advances decreased from 0.90% to 0.86%. Non-interest income mainly comprises fee and commission income, trading income and other operating income. The total non-interest income increased by 12.9% to N$523 million (2012: N$463 million). Operating expenses increased by 8% (2012: 10%), to N$763 million (2012: N$707 million). The growth in operating expenses slowed down compared to the prior year, mainly due to increased efficiencies, a focused effort to contain costs and an underspend in IT related projects. The reduction in the operating expense growth, coupled with good income growth, resulted in an improved cost to income ratio of 54.1% (2012: 57.9%). Loans and advances to customers grew by 14.0% to N$17.7 billion (2012: N$15.5 billion), which is mainly due to growth in the overdraft and mortgage loan books. Of the N$361.2 million capital raised through the listing, BWH invested N$200 million in Bank Windhoek to further increase the bank’s Tier 1 capital in anticipation of the implementation of Basel III. This capital will also fund further investment in information technology and innovative payment systems and channels to market, in order to enable the bank to better service its existing client base as well as to better penetrate the unbanked and under-banked market in Namibia. “The group will remain focused on delivering sustainable long-term value to its shareholders and improve on returns, notwithstanding the challenges in the operating environment and changing landscape of the banking sector. In delivering increased shareholder value, the group has identified the following strategic drivers for the ensuing years: • Controlled growth in assets; • Capital management; • Investment in technology and innovation; • Diversification of income streams; and • Focused cost efficiency programs. The directors expect the 2014 growth in total comprehensive income to be in line with the forecast of 14%, as indicated in the prospectus. The group will continue to invest in capacity to support future growth and expansion of business activities. The Board will continue to explore opportunities for utilising the capital raised during the public offer for strategic investments”, concluded Christo de Vries.
Posted on: Sun, 18 Aug 2013 18:24:41 +0000
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