Standard Bank loans up 17%
Standard Bank Namibia’s customer loan book grew by 17.4% to N$29 billion in the six months to June, significantly outpacing the broader private-sector credit market as the bank continued to expand lending despite slower economic growth.
Private-sector credit extension grew by 4.5% over the same period, meaning Standard Bank’s customer lending expanded almost four times faster than the overall market.
The performance was driven by strong growth in corporate lending, vehicle and asset finance, and a return to growth in home loans.
Lending leads the results
Corporate lending grew by 15.5%, while vehicle and asset finance increased by 19.5%.
Home loans increased by 1%, marking the first return to positive growth in the bank’s home-lending business since 2022.
The overall loan book includes a N$2 billion facility extended to the ministry of finance to support Namibia’s Eurobond redemption programme late last year.
Excluding that facility, underlying customer loan growth was 9.3%, still more than double private-sector credit growth.
Profit edges higher
Standard Bank reported profit attributable to ordinary shareholders of N$576.4 million for the first half of 2026, up from N$556.2 million in the same period last year.
Profit for the period increased to N$579.7 million from N$556.9 million, while earnings per share rose to 110 cents from 106 cents.
Net interest income – the income the bank earns from lending after accounting for the cost of its funding, increased by 6% to N$1.11 billion.
That growth came despite cumulative policy rate cuts of 50 basis points during the period, which put pressure on lending rates.
Higher average loan balances helped offset some of that pressure, while the bank also benefited from a shift towards lower-cost funding.
Deposits grow faster than loans
Customer deposits and current accounts increased by 31% to N$39 billion.
Current account balances grew by 51%, while call savings balances increased by 25%.
The stronger growth in lower-cost demand deposits improved the bank’s funding mix and helped contain the cost of funding its lending activities.
The deposit growth also left the bank with surplus liquidity, with some of the excess funds placed in short-term investments while waiting to be deployed into customer lending.
Financial assets increased by 26% to N$11.1 billion. Of this, N$9.1 billion comprised high-quality liquid assets, while a further N$2 billion related to short-term investments arising from deposit growth exceeding loan deployment.
Mining and oil and gas support trading income
Non-interest revenue increased by 2% to N$809 million.
Net fee and commission revenue grew by 3.1%, while trading revenue increased by 23.6%.
The bank attributed the increase in trading revenue partly to higher foreign exchange sales to clients in import-oriented and investment-led sectors, particularly mining and oil and gas.
The overall increase in non-interest revenue was partly offset by an 11.7% decline in other income.
The decline was mainly because the previous year included N$31 million in gains from property disposals. Excluding that once-off gain, Standard Bank said underlying other income would have increased by 22%, while total non-interest revenue would have grown by 6%.
Credit risk remains contained
The expansion of the loan book has not yet translated into a significant increase in credit impairment costs.
The impairment charge was N$72.2 million, broadly unchanged from N$71.9 million a year earlier, while the credit loss ratio improved by 10 basis points.
There was an increase in stage 2 exposures – loans showing signs of increased credit risk – but the bank said much of this reflected precautionary migration of accounts showing early signs of financial stress rather than actual defaults.
Stage 3 exposures, which represent credit-impaired loans, also increased, but the bank said this was linked to a limited number of specific exposures moving into default.
The impact on provisions was contained because loan growth was weighted towards lower-risk and well-secured segments. Recoveries on older non-performing loans also helped offset additional provisions on newly migrated exposures.
Costs remain below inflation
Operating expenses increased by 3.5% to N$1.04 billion, below Namibia’s 4.4% inflation rate during the period.
The bank’s cost-to-income ratio improved to 54%, from 54.4% a year earlier.
Staff costs increased by 8.7%, reflecting annual salary increases, changes in the workforce profile and higher variable remuneration.
IT costs rose by 1% as the bank continued investing in its digital capabilities.
These increases were partly offset by a 3.4% decline in other operating expenses, mainly due to lower premises costs and professional fees following the disposal of the Spearmint portfolio and the bank’s branch optimisation strategy.
Capital supports higher dividend
Standard Bank maintained a strong capital and liquidity position.
Its total capital adequacy ratio stood at 16.6%, while its common equity tier 1 ratio was 15%, both above minimum regulatory requirements.
The board declared an interim dividend of 67 cents a share, up 5% from the previous period.
The dividend amounts to about N$350 million and remains subject to regulatory approval.
For shareholders, the higher dividend comes alongside an increase in earnings per share to 110 cents from 106 cents.
