The Bank of Namibia has declared a dividend of N$413.7 million to the State Revenue Fund, following a positive financial performance for the 2022 financial year which improved significantly compared to 2021.
Favorable interest rates during 2022 and the increase in the Bank’s reserves balance contributed to the improvement in the Bank’s financial performance.
“In 2022 the Bank executed its first year of the three-year Strategic Plan (2022- 2024. The plan sets the direction to be followed and establishes clear priorities to align departments towards a common goal. Moreover, the plan envisions a digitalisation transformation of the Bank with a fully modernised financial system, maximising its contribution in restoring economic growth and sustaining economic development.
Through continuous staff commitment and collaboration, and the support of the Board of the Bank, the Bank maintains its commitment to achieving its strategic objectives as outlined, towards becoming a leading central bank that continues to be dedicated to the prosperity of Namibia,” the Bank said.
The central Bank also noted that the banking Industry remained profitable, liquid and well capitalised.
The industry observed an improvement in both the capital adequacy and liquidity position which further remained above the statutory minimum requirements.
“Furthermore, return on assets and return on equity increased, presenting an improvement in profitability. Asset quality, as measured by the ratio of non-performing loans (NPLs) to total loans stood at 5.6 percent at the end of December 2022, lower than 6.4 percent recorded a year earlier. This was a welcome improvement, as the NPL ratio stood below the crisis trigger benchmark ratio of 6.0 percent, indicating that the quality of assets was satisfactory during 2022.
“Despite the improvement in this ratio during the latter part of 2022, the impact of inflationary pressures, interest rate adjustments and uneven economic recovery is still filtering through and is expected to negatively affect the ratio. Overall, the banking sector remained sound, with no real threat to financial system stability,” added the Bank.