FirstRand Namibia half-year profit up

For the six months ending 31 December 2025, FirstRand Namibia reported a profit of N$1.06 billion, up from N$926 million in 2024. Return on equity rose to 30.2% (2024: 29.6%).

Interest income declined 7.2% to N$2.8 billion (2024: N$3 069 million) due to a 25-basis-point repo rate cut and a narrower prime-repo spread. This was partly offset by a 28.8% drop in interest expense from lower institutional funding. Net interest margin improved to 6.3% (2024: 5.4%), driving net interest income up 11.2% to N$1.8 billion.

Impairment charges fell to N$173 million (2024: N$263 million), with the credit loss ratio and non-performing loan ratio improving to 0.4% (2024: 0.7%) and 4.3% (2024: 6%), respectively. The prior year’s higher credit loss ratio (CLR) reflected regulatory changes, shortening the write-off period for non-performing loans under bad and doubtful debts. Loan defaults also decreased following ongoing credit initiatives.

Non-interest revenue (NIR), including insurance results, rose 3.9% to N$1.3 billion, supported by higher fees, card commissions, and transaction volumes. NIR accounted for 45.6% of total income (2024: 49.1%), reflecting the group’s focus on a balanced revenue mix and customer growth.

Operating expenses increased 10.4% to N$1.5 billion (2024: N$1.3 billion), mainly due to investment in digital transformation, regulatory compliance, and human capital. The cost-to-income ratio edged up to 47.4% (2024: 46.5%). Staff costs rose 10.6%, with salary adjustments and targeted hiring, while information technology spending increased to enhance efficiency and customer experience.

Total assets declined 2.6% following the exit of the structural asset-liability management hedge in January 2025. Net advances grew 6.6%, largely from term-loans in RMB, which increased 58.7%. Deposit growth of 4% was driven by a 9.4% rise in franchise deposits, offsetting a 26.7% reduction in institutional funding. The group achieved a return on assets of 3.4%.