SBN Holding’s non-interest revenue grew by 7.7%, continuing to grow above inflation levels to N$615 million attributable to good margins on trading revenue and growing use of digital channels, notably electronic banking and instant cash.
This was revealed by the SBN Holding in its release of interim results for the six months ended 30 June 2022.
“Excluding the reduction in other gains and losses on financial instruments in first half of 2022 versus first half of 2021, the growth in non-interest revenue has been 10.7% over the reporting period. Non-interest revenue for first half of 2022 has recovered well and exceeds 2019 levels of N$608 million, supported by growth in our customer base and increased adoption of our digital channels,” the Group said.
SBN Holdings is the holding company of Standard Bank Namibia.
The Group’s first half of 2022 profit after tax grew by 24.1% period-on-period to N$235.3 million.
“Modest balance sheet growth, stronger signals of a recovering economy and the positive endowment effect ensuing from repo rate increases has, driven substantial performance growth in 2022,” the Group further said.
Net interest income showed good growth stemming from the hikes in the repo rate, strong loans and advances growth and favourable restructure of the composition of the deposits and current accounts. The net interest margin improved to 4.3% (31 December 2021: 3.8%).
Credit impairment charges increased by 7.2% to N$132 million and the credit loss ratio remained flat period-on-period. This remains a continued focus area.
“Growth in operating expenses of 6.8% was driven by rising inflation of 6.0% for June 2022, ‘Change-the-Bank’ technology costs to support client growth strategies, planned intergroup service management cost increases and increased operating costs as employees return to work. Our costs are robustly monitored and cost containment measures are in place to keep expenses within budgetary constraints,” added the group.
Gross loans and advances to customers increased by 2.2% to N$23.4 billion period-on-period driven by growth in vehicle and asset finance loans of 6.5%, corporate lending growth of 6.4% and growth in other loans and advances of 9.6% with signs of recovery being seen in credit demand.
The decline in sovereign lending is attributed to good performance on structured transactions, resulting in reduced exposure. Loans and advances to banks increased by 133.9% following temporary placements with the central bank, primarily.