| Tue 11 Mar 2025, 8:40 | | Consolidated financial results for the year ended 31 December 2024 |
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Consolidated financial results for the year ended 31 December 2024
SBN Holdings Limited
(Incorporated in the Republic of Namibia)
(Registration number: 2006/306)
ISIN: NA000A2PQ3N5
NSX Share Code: SNO
("SBN Holdings" or "the Group")
CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2024
• BASIC EARNINGS PER SHARE OF 201 CENTS (2023: 147 CENTS)
• HEADLINE EARNINGS PER SHARE OF 203 CENTS (2023: 150 CENTS)
• GROWTH IN HEADLINE EARNINGS OF 35.1% (2023: 25.9%)
• FINAL ORDINARY DIVIDEND PER SHARE OF 70 CENTS (2023: 58 CENTS)
• TOTAL DIVIDEND PER SHARE OF 138 CENTS (2023: 100 CENTS)
Results
Key highlights from SBN Holdings Limited results for the period under review include:
• Profit for the year increased by 36.8%, up from N$770 million to N$1.053 billion. Pre-provision
profit increased by 27.6% from N$1.279 billion in the prior year to N$1.631 billion in the current
year. Main contributors to this growth are the increase in: net interest income of 14.8% and non-
interest revenue of 15.3%. Due to this strong income growth, the group achieved a difference
between income growth and cost growth (JAWS) of 810 basis points (bps).
• Net interest income surged to N$2.067 billion, a 14.8% increase from prior year. This growth was
underpinned by strong average balance sheet growth and higher margins resulting from funding
optimisation strategies. Net interest margin increased by 40bps to 5.6% in the current year.
• Non-interest revenue increased by 15.3% to N$1.678 billion from prior year, underscored by
increases in: net fee and commission revenue of 9%, trading revenue of 11.7%, other revenue of
31.7% and other gains and losses on financial instruments of 46.8%. The main driver for the
increase in net fee and commission revenue was the growth in transactional volumes. Trading
volumes, expanded client propositions, foreign exchange and commodity volatilities underpinned
the growth in trading revenue. Other revenue growth was driven by the increase in insurance
related revenue which grew by 7.9% from prior year and profits earned on the disposal of
Spearmint Investments (Pty) Ltd related entities. Increase in other gains and losses in financial
instruments is largely due to a 57.2% growth in distributions from financial investments driven by
higher investments resulting from excess funds held during the year.
• Credit impairments decreased by 35.1% year on year, as a result of the regularisation of group
scheme home loan accounts which were previously impaired due to technical challenges, the
realisation of our non-performing loan (NPL) strategy in the current year and the improved quality
of the book. The credit loss ratio (CLR) decreased to 0.37% compared to 0.59% in prior year. The
CLR improved due to the decrease in credit impairment charges and the growth in loans and
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advances. The group is prudent in its provisioning and closely monitors and reassesses its
strategic NPL initiatives to ensure they are fit for purpose.
• Operating expenses growth decreased by 10.8% from prior year to 6.9% which tracked closer to
the average inflation for the year of 4.3%. The group's cost-to-income (CTI) ratio has decreased
to 56% from 61% in 2024. The main driver of the increase in expenses were:
o Staff costs which went up by 10.2%, underpinned by annual salary increases of 7%, filling
of vacant positions, engagement of temporary IT employees to support key regulatory
projects such as PSD 9, and higher variable remuneration aligned with group performance.
Other operating expenses grew by 4.5%, which is in line with average annual inflation of 4.3%.
• Cash and cash balances with central bank increased significantly due to higher levels of liquidity
experienced in the market during 2024.The growth in trading assets and financial investments of
18.5% is underpinned to additional investments in liquid assets (bonds, treasury bills and money
market funds) to meet the high-quality liquid assets (HQLA) requirement for Basel III implemented
in the current year and due to surplus funds resulting from elevated level of market liquidity.
• Gross loans and advances to customers increased by 3.6% year on year, in contrast to the
negative growth of 2.8% experienced in prior year. The franchise portfolio increased as follows:
CIB by 9.8% driven by the growth experienced in medium term loans and BCB and PPB portfolios
by 1.7% underpinned by growth in vehicle and asset finance and unsecured lending as a result of
the digital lending introduced in the current year. Although home loans grew negatively by 1.8%
mainly due the run down on the book, the new business written was 66% higher than in the prior
year.
• Despite the difficult macroeconomic environment characterised by prolonged high interest rates,
sticky and elevated inflation, our NPL ratio (including interest in suspense) decreased from 4.52%
(restated) in 2024 to 3.77% which is below both the industry average of 5.6% as at 31 December
2024 and the regulatory trigger limit of 6%. The decline in the NPL ratio demonstrates our
disciplined and prudent approach to credit risk management and is testament to the resilience of
our NPL reduction plan. The group remains committed to closely monitoring NPLs to ensure a
good quality book.
• There was a significant increase in deposits from customers of 10.9%, attributable to an increase
in demand deposits, term deposits and a strategic decrease in negotiable certificates of deposits.
The aforementioned increase is a result of our efforts to diversify our deposit mix to meet strategic
goals. Debt securities decreased by 23.2% following the redemption at maturity of the SBNA24
and SBNO2 facilities with an issuance volume of N$658.5 million during the year. The group's
liquidity position remained strong and within approved risk appetite and tolerance limits. The group
continuously ensures that it has sufficient marketable assets available in its portfolio to meet the
outflow demand in both business as usual as well as stress circumstances.
• The ROE improved to 20.0% from 15.6% in the prior year reflecting our strong financial
performance, capital optimisation and disciplined cost management. The group remained well
capitalised with the total regulatory capital ratio at 18.0% (2023: 20.7%) and the total tier 1 capital
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ratio at 16.0% (2023: 18.2%). These ratios are above our risk appetite and regulatory minimum
requirements.
Business update
Operating environment
The year under review saw the group supporting the economy through increased credit extension which
tracked closer to the Private Sector Credit Extension (PSCE), demonstrating our commitment to live our
purpose, 'Namibia is our home, we drive her growth'. We are indebted to our employees (referred to as
champions) and management for this exceptional set of results which came on the backdrop of a
challenging macroeconomic environment which was characterised by high interest rates, drought,
elevated inflation and subdued PSCE among others.
Delivering our strategic objectives
The group enters 2025 in an extremely strong position, underpinned by an enviable client franchise,
support of our clients, energised and focused champions and shareholders and other stakeholders who
are ready to partner with us. The group's 2025 strategic priorities continue to be transforming client
experience, executing with excellence and driving sustainable growth and value. We remain committed
to delivering on these strategic initiatives. We have refreshed our current strategy and
crafted bold ambition for our 2025–2028 horizon with clear 'must win' battles for each business unit.
Dividend
The Board recommended a final ordinary dividend of 70 cents per share (2023: 58 cents per ordinary
share).
The salient dates are as follows:
Last day to trade cum dividend: 30 April 2025
First day to trade ex–dividend: 2 May 2025
Record date: 9 May 2025
Payment date: 23 May 2025
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Looking ahead
Looking ahead, we remain committed to supporting economic growth and delivering sustainable value to
our stakeholders. With a solid foundation and a clear strategic vision, the group is well positioned to
navigate future opportunities and challenges in a dynamic economic landscape, as we strive to live our
purpose, 'Namibia is our home, we drive her growth'.
IH TJOMBONDE E TJIPUKA
CHAIRMAN CHIEF EXECUTIVE
10 March 2025
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BOARD OF DIRECTORS:
IH Tjombonde (Chairman)
E Tjipuka
S Hornung
STB Madonsela
AT Matenda
JS Mwatotele
JG Riedel
PL Schlebusch
NA Tjipitua
COMPANY SECRETARY
S Tjijorokisa
AUDITOR'S OPINION
The consolidated financial statements are an extract from the audited financial statements for the year
ended 31 December 2024. The auditor's unqualified audit opinion on the financial statements is available
for inspection at the Company's registered office.
The information in this announcement has been extracted from the audited financial statements, but the
announcement itself is not audited.
REGISTERED OFFICE
1 Chasie Street, Kleine Kuppe, Windhoek; P.O. Box 3327, Windhoek, Namibia
AUDITORS
PricewaterhouseCoopers
344 Independence Avenue, Windhoek
SPONSOR
IJG Securities (Pty) Ltd
Member of the NSX
4th Floor, 1@Steps, c/o Grove and Chasie Streets, Kleine Kuppe,
Windhoek, Namibia
TRANSFER SECRETARIES
Transfer Secretaries (Pty) Ltd
4 Robert Mugabe Avenue
P.O. Box 2401
Windhoek, Namibia
Release date: 11 March 2025
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SBN HOLDINGS LIMITED
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 December 2024
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2024
Change Audited Audited
31 December 31 December
2024 2023
% N$' 000 N$' 000
Net interest income 14.8 2,067,311 1,800,015
Non-interest revenue 15.3 1,677,624 1,455,093
Total income 15.0 3,744,935 3,255,108
Credit impairments (35.1) (106,103) (163,411)
Income after credit impairments 17.7 3,638,832 3,091,697
Operating expenses 6.9 (2,113,374) (1,976,192)
Net income before tax 36.8 1,525,458 1,115,505
Taxation (indirect and direct) 36.7 (472,844) (345,792)
Profit for the year 36.8 1,052,614 769,713
Profit attributable to ordinary shareholders 36.7 1,049,904 766,267
Other comprehensive income net of taxation
that will not be reclassified to profit or loss
Net change in fair value of equity financial assets
measured at fair value through other
comprehensive income (FVOCI) 111.7 2,792 1,319
Fair value movement on post-employment benefit (198.3) 6,351 (6,458)
Total comprehensive income for the year 38.9 1,061,757 764,574
Attributable to ordinary shareholders 39.1 1,059,047 761,128
Attributable to non-controlling interest (21.4) 2,710 3,446
EARNINGS PER SHARE
Profit for the year attributable to ordinary
37.0 1,049,904 766,267
shareholders
Weighted average number of shares issued — 522,472 522,472
Basic earnings per share 36.7 201 147
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 December 2024
Change Audited Audited
31 December 2024 31 December 2023
% N$' 000 N$' 000
Assets
Cash and balances with central banks 120.5 3,693,494 1,675,382
Trading assets and financial investments 18.5 9,005,485 7,598,611
Loans and advances to banks (2.5) 5,292,869 5,429,848
Loans and advances to customers 3.8 22,340,071 21,524,042
Properties in possession (68.9) 136,768 439,255
Other assets 26.1 2,524,158 2,002,452
Total assets 11.2 42,992,845 38,669,590
Liabilities
Deposits from banks 236.5 763,908 227,038
Deposits from customers 10.9 33,239,449 29,982,379
Debt securities (23.2) 1,714,016 2,230,957
Other liabilities 56.3 1,784,239 1,141,425
Total liabilities 11.7 37,501,612 33,581,799
Equity 7.9 5,491,233 5,087,791
Total equity and liabilities 11.2 42,992,845 38,669,590
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2024
Ordinary Fair value
share Share- adjustments Post-
capital based on FVOCI employment Statutory Ordinary Non-
and payment financial benefit credit risk Retained shareholders controlling
premium reserve assets reserve reserve earnings equity interest Total equity
N$'000 N$'000 N$'000 N$'000 N$'000 N$'000 N$'000 N$'000 N$'000
Balance at 1 January 2023 643,234 — (3,100) 49,118 109,300 3,968,910 4,767,462 15,530 4,782,992
Total comprehensive income for the year — — 1,319 (6,458) — 766,267 761,128 3,446 764,574
Profit for the year 766,267 766,267 3,446 769,713
Other comprehensive income/(loss) after tax for
the year 1,319 (6,458) (5,139) (5,139)
Transactions with the shareholders, recorded
— — — — 100,498 (560,273) (459,775) — (459,775)
directly in equity
Transfer between reserves 100,498 (100,498) — —
Dividends paid (459,775) (459,775) (459,775)
Balance at 1 January 2024 643,234 — (1,781) 42,660 209,798 4,174,904 5,068,815 18,976 5,087,791
Total comprehensive income for the year — — 2,792 6,351 — 1,049,904 1,059,047 2,710 1,061,757
Profit for the year 1,049,904 1,049,904 2,710 1,052,614
Other comprehensive income after tax for the
year 2,792 6,351 9,143 9,143
Transactions with the shareholders, recorded
directly in equity — — — — 58,025 (716,340) (658,315) — (658,315)
Transfer between reserves 58,025 (58,025) — —
Dividends paid (658,315) (658,315) (658,315)
Balance at 31 December 2024 643,234 — 1,011 49,011 267,823 4,508,468 5,469,547 21,686 5,491,233
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CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 December 2024
Audited Audited
31 December 2024 31 December 2023
Restated*
N$'000 N$' 000
Net cash flows from operating activities 3,219,051 2,144,270*
Cash flow from operations 1,783,187 1,429,311
Net movement in operating assets and
1,710,301 1,057,000*
liabilities
Dividends received — —
Direct taxation paid (274,437) (342,041)
Net cash flows used in investing activities (114,139) (92,095)
Capital expenditure on property and
(114,380) (66,417)
equipment
Proceeds from sale of property and
472 2,743
equipment
Capital expenditure on intangible assets (231) (28,421)
Net cash flows used in financing activities (1,174,550) (774,578)
Senior debt issued 150,000 —
Senior debt redeemed (658,500) (300,000)
Principal element of lease payments (7,735) (14,803)
Subordinated debt issued — —
Subordinated debt redeemed — —
Dividends paid (658,315) (459,775)
Net increase in cash and cash equivalents 1,930,362 1,277,597*
Cash and cash equivalents at the beginning of the
6,256,809 4,783,533
year
Effects of exchange rate changes on cash and cash
(3,923) 195,679 *
equivalents
Cash and cash equivalents at the end of the year 8,183,248 6,256,809
* Refer to the narrative included in note 4 below for further details regarding the restatement.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Reporting entity
SBN Holdings Limited is a company incorporated in Namibia (Registration number:
2006/306). The consolidated annual financial statements for the year ended 31 December
2024 comprise the Company, its subsidiaries and other controlled entities, together
referred to as the "Group".
2. Statement of compliance
The consolidated financial statements have been extracted from the audited financial
statements for the year ended 31 December 2024, which have been prepared in
accordance with IFRS Accounting Standards (IFRS).
The annual financial statements were approved by the Board of Directors on 7 March
2025.
3. Significant accounting policies
The accounting policies applied in the annual financial statements as at and for the year
ended 31 December 2024, are consistent with the prior year, except for the adoption of
new and amended IFRS's that became effective for the current financial period. In
accordance with the requirements of the transition methods chosen by the group in
applying these standards, comparative information throughout the annual financial
statements has not been restated.
4. Restatements
Correction of effects of exchange rate differences on cash and cash
equivalents
During 2024, the group performed benchmarking and internal reviews to assess the
appropriate accounting treatment for the effect of exchange rate differences on cash and
cash equivalents. The following have been identified during this exercise and have
resulted in the below restatement of errors and additional related disclosures:
• Correcting the calculation of the effects of foreign exchange rate differences to
exclude on-demand loans and advances to banks that do not meet the definition
of cash and cash equivalents and should not be included in the cash and cash
equivalents balance. This resulted in a N$68.4 million decrease in the 2023 effects
of exchange rate differences on cash and cash equivalents.
• The methodology used to calculate the effects of foreign exchange rate differences
contained a mathematical error in calculating the effect of foreign exchange rate
differences on cash and cash equivalents. The group changed the methodology,
resulting in an increase in the 2023 effects of exchange rate differences on cash
and cash equivalents of N$225.2 million.
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The 2023 calculation was adjusted for the above and the balances of the relevant lines
were restated.
This restatement had no impact on the group's consolidated statement of financial
position, consolidated income statement or any ratios presented, and had the following
reallocation impact on the consolidated statement of cash flows:
2023
CONSOLIDATED STATEMENT OF CASH
Previously
FLOWS
reported Restatement Restated
N$'000 N$'000 N$' 000
Net cash flows from operating activities 2,301,109 (156,839) 2,144,270
Cash flows from operations 1,429,311 — 1,429,311
Interest and commission receipts 4,622,667 4,622,667
Interest payments (1,522,706) (1,522,706)
Recoveries on loans previously written off 37,751 37,751
Cash payments to suppliers and employees (1,708,401) (1,708,401)
Net movement in operating assets and liabilities 1,213,839 (156,839) 1,057,000
Increase in income earning assets (1,758,287) (156,839) (1,915,126)
Increase in deposits and other liabilities 2,972,126 2,972,126
Direct taxation paid (342,041) (342,041)
Net cash flows used in investing activities (92,095) (92,095)
Net cash flows used in financing activities (774,578) (774,578)
Net increase in cash and cash equivalents 1,434,436 (156,839) 1,277,597
Cash and cash equivalents at the beginning of the
4,783,533 4,783,533
year
Effects of exchange rate changes on cash and
38,840 156,839 195,679
cash equivalents
Cash and cash equivalents at the end of the
6,256,809 — 6,256,809
year
Reallocation between classes of loans and advances
Commercial property loans with a gross carrying amount of N$532.1 million for 2023 was
reallocated from "Home services" to "Other loans and advances" due to a misallocation.
This restatement is only for presentation purposes and has no impact on the group's
consolidated statement of financial position, consolidated income statement, consolidated
statement of cash flows or any disclosed ratios.
Appropriate disclosures were made in the financial statements for the abovementioned
restatements.
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5. Earnings per share
Change Audited Audited
Headline earnings reconciliation 31 December 2024 31 December 2023
% N$'000 N$'000
Profit for the year attributable to ordinary
shareholders 37.0 1,049,904 766,267
Adjusted for:
IAS 16 (Profit) on sale of property & equipment (61.5) (321) (833)
IAS 36 Impairment losses on property and
equipment (37.3) 288 459
IFRS 3 – Goodwill impairment (49.3) 8,932 17,629
Headline earnings 35.1 1,058,803 783,522
Net asset value per share (cents) 7.9 1,047 970
Basic earnings per share (cents) 36.7 201 147
Headline earnings per share (cents) 35.3 203 150
Changes to the board
During the year, the following changes to the composition of the board occurred:
• Mr STB Madonsela was appointed on 2 February 2024.
• Mr AT Matenda was appointed on 2 February 2024.
• Mr H Maier retired as the chairperson on 31 March 2024 and as a director on
23 April 2024.
• Mr IH Tjombonde was appointed as the chairperson on 1 April 2024.
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Date: 11-03-2025 08:40:00
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