FirstRand Namibia has announced a robust set of financial results for the year ended 30 June 2025, showcasing resilience and strategic growth amidst a dynamic economic landscape. The group achieved a net profit after tax of N$1.9 billion, a significant 12.2% increase from the N$1.7 billion reported in 2024.
The performance was underpinned by substantial customer growth, higher transaction volumes, and effective management of operating expenses, even as the company navigated a rise in impairment charges. Key profitability metrics also improved, with Return on Equity (ROE) climbing to 28.6%, up from 27.8% the previous year. Net asset value per share rose to 2 676 cents from 2 329 cents, reflecting strong value creation for shareholders.
In a move that further rewards its investors, the board declared a dividend of 476.34 cents per share, marking a notable 34.7% year-on-year increase.
Lizette Smit, a representative of the group, commented on the results, stating, “We are pleased with our progress on the key drivers of shareholder value creation. Our performance reflects disciplined financial resource management, strong customer growth, and effective cost containment. We are well-positioned to respond to emerging risks and leverage strategic opportunities.”
The group’s balance sheet remained a point of strength. Total advances grew by 3.9%, though growth at its flagship banking brand, FNB, was subdued due to regulatory write-offs, higher repayments, and slower market growth. In contrast, RMB Namibia reported a strong advances growth of 16.2%, driven by a focus on sectors with above-cycle potential.
Deposits saw a steady increase of 2.1%, solidifying the group’s funding base and supporting its return profile. FNB continues to hold its position as the largest custodian of retail and commercial deposits in Namibia, a status achieved through competitive pricing and tailored client offerings.
On credit performance, the impairment charge for the year increased by 23.9% to N$527 million, primarily due to higher regulatory-driven write-offs. This resulted in a credit loss ratio of 1.3%, up from 1.1% in 2024. The group anticipates an overall improvement in impairments in the new financial year, aided by a lower interest rate environment and ongoing initiatives to manage risk.
Operating expenses were tightly controlled, increasing by just 5.5% to N$2.8 billion. This disciplined cost management led to an improved cost-to-income ratio of 46.2%, demonstrating enhanced operational efficiency.
Strategically, the group launched several key initiatives, including H.E.R (Helping Every Woman Rise), a tailored banking solution for women in business, and a new SME digital hub to support small and medium enterprises. A N$500 million sustainability bond was issued to fund environmental and social projects. Other innovations included the FNB Collective Buying scheme for property investment and the expansion of CashPlus agency banking to improve financial inclusion.
Looking ahead, FirstRand Namibia emphasised its commitment to prudent credit management, responsible capital deployment, and leveraging technology to drive its strategic goals. Continued investment in digital platforms, process automation, and employee development is expected to ensure the group remains resilient and well-positioned for sustainable, long-term growth.