Africazine:
FirstRand Namibia anticipates a significant rise in earnings for the upcoming financial year, reflecting robust growth in lending and deposits.
The group expects its earnings and headline earnings for the year ending 30 June 2026 to increase by between 10% and 15% compared to the previous year. This growth is attributed to stronger credit performance, an increase in customer numbers, and higher transaction volumes.
FirstRand Namibia Reports Strong Financial Outlook
FirstRand Namibia has issued a trading statement on the Namibia Securities Exchange, highlighting its expected earnings growth. The group attributes this positive outlook to improved credit performance and an expansion in franchise deposits. The anticipated increase in earnings signals continued growth across its banking franchise.
For the year ending 30 June 2025, FirstRand Namibia reported a net profit after tax of N.9 billion, marking a 12.2% increase from N.7 billion in 2024. The return on equity also improved, rising to 28.6% from 27.8% in the previous year.
Key Financial Metrics and Performance Drivers
The group’s performance reflects disciplined management of financial resources and operating costs. Total advances increased by 3.9%, while deposits grew by 2.1%. However, credit costs rose, with the impairment charge increasing by 23.9% to N7 million, primarily due to higher write-offs.
Operating expenses were managed effectively, rising by only 5.5% to N.8 billion. The cost-to-income ratio improved to 46.2%, showcasing the group’s commitment to optimizing costs and enhancing productivity.
Upcoming Financial Results Release
- Audited financial results for the year ended 30 June 2026 are expected to be released on or about 10 September 2026.
FirstRand Namibia is poised for a strong financial year, driven by growth in lending and deposits.
