More articles in this category
Top Stories

The RCC board chairperson Fritz Jacobs has told The Villager that he welcomes the Cabinet Committee on Overall Policy and Priorities’ (CCOPP...

The Ovaherero paramount chief, Vekuii Rukoro has proposed that the recently discovered Ovaherero and Nama human remains should be kept in the Unit...

The Oshakati Town Council in partnership with Oshakati Premier Electric (OPE) has launched a pilot phase of national support tariff mechanism with...

Analysts have voiced their concern over the latest move to place the Roads Contractor Company (RCC) under administrative management saying that wh...

  Michael Gaweseb, a NamWater director, has written to the board urging them to discipline the Chief Executive Officer Dr Vaino Shivute ov...

Namibia Equity Brokers (NEB) analyst Ngoni Bopoto has said GRN is well on course in its efforts to bring down debt to manageable levels judging by...

Other Articles from The Villager

DBN profits N$35million

Tue, 23 October 2012 15:56
by Business Writer
News Flash

Development Bank of Namibia (DBN) profit after tax for the year 2011 stood at N$35m compared to N$71m in 2010. This was due to the impairment provision made by the bank this year compared to 2010, according to the Annual Report 2011 results released today.
DBN chief financial officer, Renier van Rooyen, pointed out that the overall impairment ratio for 2011 was at 4.7%, which is within the 7% benchmark of the Association of African Development Finance Institutions (AADFI).
In addition,  DBN's asset-base grew by 32% to N$1.6b from N$1.2b in 2010, thus making it the fastest growing financial institution in the country. Since its inception in 2004, the asset-base has recorded an average growth of 31%.
The total impairment ratio was at 1% the year 2007, which stood at N$10. 5m to an increase of 4% with N$61m in 2011.
“Management of impairment is treated as a key indicator but is not representative of bad debt or losses to the bank. The impairment ratio is the percentage of debt where payment is delayed or at risk. It is not the same as bad debt, which are not recovered. Bad debts will only be a smaller percentage of the impairment ratio,” Van Rooyen said.
He adds that impairment will include delayed or late payments and provision for delayed repayment when circumstances beyond the borrower’s control will mean that repayment will place the continued existence of the business in jeopardy.
Van Rooyen noted that the bank did not record any written-off loans; they have only recorded around 20 loans written off since the bank inception in 2004.
However, the management of DBN is confident that much of these impaired accounts will yield during the course of this year, primarily as a result of payment cycle that delay remittances to the bank.
On the other hand, DBN reported an increase of close to 40% of its loan book in 2011 as stated today.
The CEO, David Nuyoma, accounted this growth to the projects identified and financed for their strategic value; “The bank financed projects in all the regions, keeping with its objectives of spreading economic activity and job-creation across the country.”