Bank Windhoek concluded its financial year June 30 2011 with annual net profits after tax growing by 12 per cent to N$276,9 million. Major contributors to this positive performance was the bank's focused funding strategy, as well as sound credit management processes as evidenced in the charge for bad debts ratio of 0,2 per cent of gross advances.

Operating expenses grew by a controlled 12 per cent from the previous year, resulting in an improved cost to income ratio of 58 per cent from 60 per cent in the previous year.

"Investment into human capital continues to be the largest contributor to operating expenses with the number of employees increasing to 1 250 permanent employees, followed by information technology costs. Bank Windhoek keeps abreast of technology changes, an area identified by the bank as a key strategic driver", Bank Windhoek's managing director, Christo de Vries, said in a statement on Thursday.

Gross advances increased with N$1,7 billion, representing a 15 per cent growth, primarily as a result of new business from the mortgage loan portfolio. Regardless of this growth, the provision for bad debts is well maintained, below industry norms at 0,8 per cent.

Capital management remains a focus with the total risk-weighted capital ratio increasing from 12,6 per cent in the previous year to 13,2 per cent in the current year.

"Looking ahead, there is continued uncertainty in the global economic environment and with increased regulation on capital and liquidity requirements, it will remain a challenging environment to navigate.

"Risk management, to identify and address internal risks arising from the operations of the bank, as well as external risks arising from the external environment in which the bank operates, will remain a key focus," De Vries said.

The Namibian/19/09/2011