FirstRand Namibia did not emerge unscathed
…but interim results show improved economic activity
AS FirstRand presented its interim results for the six months ending 31 December 2020, the bank’s interim performance reflects some improvement in the operating environment despite sustained pressure on consumers and businesses.
“The economic impact of Covid-19 continued to place acute pressure on life as we know it and our group’s performance – just like many other businesses and individuals did not emerge unscathed. But we believe that trends post lockdown are improving as the economic recovery slowly emerges and we remain hopeful that 2021 will be a better year, for Namibia and its people and the world at large,” said Oscar Capelao, FirstRand Namibia Chief Financial Officer.
He added: “Comparing the earnings run rate of pre-March 2020 lockdown period to post lockdown, our estimate of earnings lost approximate N$185 million for the period, being decreased NII of N$156 million, NIR of N$8 million, higher impairments of N$17 million and HOPE fund CSR initiative of N$3.8 million.”
Key financial highlights in the interim results include earnings of N$564.9 million while the return-on-investment ROE at 21.5 % and CTI at 51.1 % were below the comparative period. In terms of revenue, period-on-period (December 2019 to December 2020) net interest income (NII) decreased by 14% whilst noninterest revenue (NIR) was up marginally).
Moreover, retail and commercial deposits grew with 16.3%, with large corporate deposits increasing by 20.2% and the transactional volumes trajectory has rebounded, on an aggregate basis, are back to pre-Covid levels. In addition, total financial transactions were up 6.3%; banking app transactions were up 112.0%; point-of-sale swipes (merchant acquiring) were up 11.2%; while branch transactions were down 6.3%.
Also, group operating costs decreased by 4.6% to N$1,014 million (2019: N$1 063 million), which is reflected in the cost to income ratio of 51.1% (2019: 50.9%).
Meanwhile, the group’s total assets increased by 2.2% to N$44.8 billion (2019: N$43.8 billion). Net advances making up 67.7% (2019: 71.8%) of the balance sheet, reflected a year-on-year decrease of (3.7%) to N$30.3 billion
Advances growth in FNB occurred mainly in the Retail at 2.8%, with the Commercial segment sharply down at minus 13%. At WesBank, the 6.0% decline in advances reflects the material drop in applications during the period in the Namibian retail vehicle asset finance (VAF) business, where new business contracted 26.7% for the calendar year 2020. “Our resilience in the previous six months puts us in a stronger position to accelerate our exponential help for customers in our transact, credit, insure and invest areas in the months ahead. We are particularly pleased to see that our contextual digital platform continues to be warmly embraced by our customers, evident in increasing adoption of our digital interfaces,” said Capelao.
“One of the positive highlights of the past year is the fact that we have more than 280 000 contactless cards in issue, an increase of 1400%. This means our customers are embracing new technology, and minimising physical contact at tills – especially during the Covid-19 pandemic – has thus been successfully circumvented.
Contactless payments mean shoppers avoid having to touch card readers and minimises queuing time and we are grateful that this product and service offer has been a winner with our customers.”
“In an unprecedented year, our deep commitment to our brand promise remained steadfast. The pandemic necessitated a deliberate response of help – and as a business, we took active action in providing an enabling environment for our customers, our employees and the communities in which we operate. We are driven by a purpose to be a force of good and, no matter the circumstances, we will continue to navigate a future of shared prosperity. Financial inclusion, sound money management, youth employment creation and public-private partnerships are all important themes in our strategy to provide holistic help,” Capelao concluded.
BEIJING - China’s export growth jumped to the highest in over two decades, official data showed yesterday, with imports also surging in a sharp bounceback from the coronavirus outbreak that had brought activity to a near halt.
Electronics and textile exports such as masks contributed to the spike in outbound shipments, as demand for work-from-home supplies and protective gear against the virus outbreak soared during the pandemic.
Exports spiked 60.6% on-year in the January-February period, well above analysts’ expectations, while imports rose 22.2%, official data showed Sunday.
The latest figures stand in stark contrast to last year’s fall of around 17% in exports and 4% drop in imports.
The country struggled to contain the spread of Covid-19 early on, with consumers staying home and businesses seeing a slow return to operations.
The customs administration said comparison to last year is also likely to have bolstered the latest figures, saying in a statement that the “low base is one of the reasons for the larger increase this year.”
On Sunday, official data showed that electronics exports rose 54.1%, while textiles including masks rose 50.2%.
China’s overall trade surplus came in at US$103.3 billion, its customs administration said.
Meanwhile, the country’s trade surplus with the US - a key point of contention during the trade war pursued by former president Donald Trump - doubled from the same period last year to US$51.3 billion.
Chinese authorities started combining January and February trade data last year, while it battled the coronavirus outbreak.
This is in line with how some other indicators are released, to smooth over distortions from the Lunar New Year holiday, which can fall in either month.
China’s foreign trade data remained strong despite the “offseason”, the customs authority said Sunday.
Trade was also high due to a recovery in production and consumption in major economies such as Europe and the United States amid the coronavirus pandemic, as well as improvements in domestic consumption.
Although business activity usually falls during the Lunar New Year period when workers return to their hometowns, official appeals to avoid travelling this year to keep the Covid-19 outbreak in check supported production, the customs administration added.
“Many enterprises in major foreign trade provinces such as Guangdong and Zhejiang maintained production during the Lunar New Year,” it said. “Market demand is expected to rebound further.”
Some companies have also been stocking up on goods such as integrated circuits, iron ore and crude oil imports.
“Global electronics demand has risen strongly due to the global shift to remote working and online shopping,” said Rajiv Biswas, AsiaPacific chief economist for IHS Markit.
This had driven demand for electronics products such as laptops, mobile phones and wearables, he said.
Meanwhile, the strong import growth also reflected a “normalisation of consumer spending” in China, he told AFP, after a severe slump due to lockdowns.
Analysts have warned the demand boom for protective equipment supporting Chinese exports could fade as pandemic controls improve globally, although this may not happen too soon.
“The pandemic might have already changed people’s behaviour... I think this kind of demand will still be in place for some time,” said ANZ Research senior China economist Betty Wang.
But Chinese authorities cautioned Sunday that, given global uncertainties, there is “a long way to go towards steady growth in foreign trade”.
Newly and local flick company, Bosman Films has started production of its first movie, Woestynpsalm, a feature-length Afrikaans film set in Namibia that is taking viewers on a rollercoaster ride of a female reverend who is forced to juggle traditional and modern views on religion, and the ‘acceptable’ roles of a woman in society.
Filmmaker Ben van der Walt said the film is paying tribute to his relatives. “Woestynpsalm is a homage to my family and my beautiful Namibia. Loosely based on a true story, it tells us about the physical and emotional challenges of keeping something you love alive in a desert,” explained Van der Walt.
The 22-year-old added that the narrative follows the woman in the desert - Nadia, a young protestant reverend who drives extreme distances through Namibia’s deserts every weekend to preach to a dying congregation,” he detailed.
He added: “Woestynpsalm grew as we realised the enormous filmmaking opportunities that Namibia has on offer. With this, of course, the project’s scope and budget have had to expand beyond my funding capabilities. We are now actively looking for local partners to help us bring this film to life. We would like to urge any Namibians who are in a position to contribute to reach out to us.”
Set in an ambiguous time frame sometime between the 1980s and today - Nadia is increasingly faced with growing pressure from neighbouring churches and family to reconsider her life path as a female reverend.
“As a result, she is forced to juggle traditional and modern views on religion, religious leadership and the ‘acceptable’ roles of a woman in our society,” shared van der Walt.
The filmmaker said the initial plan was that he would selffund Woestynpsalm through his freelance film projects.
Van der Walt is currently a student at the Kanbar Institute for Film and Television of New York University’s prestigious Tisch School of the Arts but returned to Namibia in March last year, just in time before the USA closed its borders due to Covid-19.
He is bound only to return to New York to continue his studies in September 2021 or later. “But Covid-19 has not managed to put my passion for filmmaking on idle, as my time in partial isolation with the family at home in Windhoek has given me ample opportunity to start conceptualising this feature-length film,” he echoed.
Van der Walt shared that Woestynpsalm cameras will start rolling around mid-April 2021, with an all-Namibian cast and a cosmopolitan crew consisting of members from Namibia, South Africa, the USA and the Netherlands.
Filming will primarily take place in Windhoek and the southern parts of Namibia, possibly as far as Lüderitz, he detailed.
The premiere and release for Woestynpsalm is planned for October 2021 with the exact dates to be announced.