Despite keeping a tight focus on risk management, the bank’s advances grew by 26%, generating sufficient income to offset the decline in the net margin, which declined by 0.1%. Net interest income grew by 24% compared with 16% in the previous year. Efficient cost management helped to contain expenditure growth to 7%, half the 2005 level.
This success of a local bank was achieved in a market that is dominated by foreign-owned financial services institutions. The bank’s holding company, Capricorn Investment Holdings, acquired the 34.4% stake held by South Africa’s ABSA, a move that was well received by the world’s major credit rating agencies.
Windhoek introduced mobile phone banking last year, the first for a Namibian bank, and it opened five community branches in the same period. The group developed and launched a wide range of other new products for savers, while its SME clients are supported with a mentor programme to help ensure their business success. The bank introduced a consumer education/financial literacy initiative called Money Matters as a weekly column in the country’s print media, and a television series consisting of 26 educational episodes. It is the first bank in Namibia to operate its systems locally.
“Bank Windhoek is very proud to receive the award for the Namibian Bank of the Year 2007,” says managing director James Hill. “It has been a Namibian bank since its establishment in 1982 and is still the only truly Namibian bank.
“In 2008, we will remain committed to making banking more affordable and accessible to all Namibians and will continue to leverage our knowledge, insight and understanding of the local economy. We will continue to develop innovative solutions and world-class banking products to address the needs of our clients.”
