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Revenue Growth Pushes Bank Windhoek Profit Up By 26 Percent

August 18, 2014

BANK Windhoek continued to build on its strong performance during 2014, with profit after tax growth growing 26,7% to reach N$624.9 million. Profit was N$493,3 million in 2013.

The group has exceeded the forecast profit after tax by 8%. The bank said this was achieved through good revenue growth, prudent expence management and effective credit management.

"It is gratifying to report on another positive financial performance of the Bank Windhoek Holdings Limited group with profit after tax growth in excess of 20% for a third consecutive year. As a group, we believe in delivering long-term sustainable value in a responsible and disciplined manner for our shareholders, while meeting the expectations of all stakeholders", said Christo de Vries, managing director.

In line with the commitments made during the listing of Bank Windhoek Holdings on the Namibian Stock Exchange in June last year to further diversify its revenue streams, the group acquired 100% ownership in Capricorn Unit Trust Management Company on 1 July 2013 for N$64,8 million and 100% of Capricorn Asset Management on 1 January this year for N$128 million respectively.

Net interest income increased by 15,6% to just over N$1 billion compared to N$914 million in 3013. This is driven by the growth in average interest-earning assets of 16, 2%.

"The strong growth in non-interest income is a direct result of the constant focus on customer service resulting in increased business volumes with the leading contributors being growth in number of accounts and substantial increase in transactions through electronic banking channels," de Vries said.

Loans and advances to customers grew by 14,7% to N$20,2 billion. The group concluded the financial year with a total risk-based capital adequacy ratio of 15,8%, well above the Bank of Namibia minimum regulatory requirement of 10%.

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Source: AllAfrica

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