Namibia’s Standard Bank Registers Record Profit

(3 Minutes Read)

According to a detailed equity analysis by Simonis Storm, the bank’s N$1.039 billion profit after tax—a 38% year-on-year surge—reflects deeper structural reforms rather than fleeting gains from elevated interest rates.

Standard Bank Namibia (SBN) Holdings has marked a historic milestone in its 2024 financial year, crossing the N$1 billion profit threshold for the first time, signalling a transformative phase for the institution amid Namibia’s evolving economic landscape.

According to a detailed equity analysis by Simonis Storm, the bank’s N$1.039 billion profit after tax—a 38% year-on-year surge—reflects deeper structural reforms rather than fleeting gains from elevated interest rates. This performance underscores SBN’s strategic pivot toward sectoral diversification, digital innovation, and disciplined risk management, positioning it as a linchpin in Namibia’s financial sector.

The bank’s earnings surge was propelled by a combination of improved net interest income, cost efficiency gains, and a significant reduction in non-performing loans (NPLs). Return on Equity (ROE) climbed to 20%, up from 15.6% in 2023, while the cost-to-income ratio tightened to 58.1%, down from 62.4%, driven by branch network rationalisation, workforce optimisation, and digital platform enhancements.

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Notably, the NPL ratio dropped sharply to 3.52% from 6.74%, reflecting proactive credit management and early intervention strategies with stressed borrowers.