Banks profit N$14.5 billion in 2024

Due to high interest rates, Namibian banks recorded revenue totalling N$14.5 billion in 2024, an increase of N$1.7 billion from 2023.

The majority of this income – N$8.7 billion – came from net interest on loans.

According to the 2024 annual report released by the Bank of Namibia (BoN) last week, this income was largely generated from interest earned on residential mortgages, fixed-term loans and other interest-related activities.

“Net interest income continued to be the banking sector’s principal source of income during 2024, constituting 54.6% of total income in 2024 in comparison with 54.7% in 2023,” read the report.

Net interest income is the difference between the interest banks charge on loans and the interest they pay on deposits.

The remaining 45.4% of total income, amounting to N$6.6 billion, came from various non-interest income streams.

Fee income, primarily derived from transaction fees and service charges, contributed N$4.5 billion (31.5%).

Net trading income – the money banks made from buying and selling securities, trading in foreign exchange and dealing in derivatives – contributed N$1.1 billion (7.9%).

Other sundry income contributed N$437.7 million (3%).

‘BIG FOUR’

In February, Capricorn Group reported a profit after tax of N$1.06 billion for the six months ending 31 December 2024, a 28.4% increase compared to the previous year, with 10% of the profit attributed to activities in Botswana.

The group’s subsidiary, Bank Windhoek, made a profit after tax of N$710 million in the same period.

Firstrand Namibia (FNB) made a profit of N$926.3 million between July and December 2024, attributing the growth to net interest income.

Standard Bank Namibia Holdings Limited reported a profit after tax of N$1.053 billion for the year ended 31 December 2024.

Nedbank Namibia’s annual results are yet to be announced.