SBN HOLDINGS LIMITED Annual Report 2022
24
24
OUR PERFORMANCE
SBN HOLDINGS LIMITED
Annual report 2022
25
Profit for the year
N$m
400 000
350 000
300 000
INCOME STATEMENT
for the year ended 31 December 2022
Change
%
2022
N$'000
2021
Restated¹
N$'000
250 000
200 000--
150 000
100 000
50 000-
0
-50 000
-100 000
Net interest income
Non-interest revenue
17.5
1 444 802
1 229 312
6.1
1 283 086
1 208 806
Net fee and commission revenue
1.4
912 644
900 347
Trading revenue
31.8
150 178
113 935
Other revenue
37.1
145 901
106 383
CHNW
BCB
CIB
Central
and other
Other gains and losses on financial instruments
(15.6)
74 363
88 141.
Total income
2022
2021
278 700
268 609
13 231
(59 020)
379 538
(47 189)
Credit impairments
11.9
(44.2)
2 727 888
2 438 118
(161 213)
(288 751)
211 390
(54 768)
Income before operating expenses
19.4
2 566 675
2 149 367
Operating expenses
5.8
(1 678 675)
(1 586 804)
Staff costs
(3.1)
(812 550)
(838 915)
Other operating expenses
15.8
(866 125)
(747 889)
Net income before tax
57.8
888 000
562 563
Taxation (indirect and direct)
34.3
(263 720)
(196 352)
70.5
624 280
366 211
Consumer and High Net Worth
(CHNW)
Profit for the year increased by 3.8% due to the 300 bps
increase in repo rate but also through a deliberate plan to
reduce impairments. Increase in costs above inflation was
due to a reallocation of costs between CHNW, BCB and CIB.
NII grew by 9.6% driven by improved liquidity management.
Credit impairments were down 26.9% due to focused
actions to manage impairments.
Profit after tax
1
Refer to restatement narrative included in the accounting policy elections and restatements section for the restatements of accrued interest and interest in suspense.
STATEMENT OF FINANCIAL POSITION
as at 31 December 2022
2021
Change
%
2022
N$'000
Restated²
N$'000
Business and Commercial Banking
(BCB)
The key priority for BCB was to reduce its non-performing
loan ratio and to become a profitable unit.
It is therefore pleasing to report that BCB delivered
N$13.2 million profit for the year.
Impairments decreased by 64.6%. BCB had previously held a
significant non-performing loan portfolio but through the
successful execution of a debt settlement transaction,
non-performing loans reduced during the year.
Assets
Cash and balances with central banks
Loans and advances to customers
12.4
1 673 337
1 488 497
Trading and pledged assets and financial investments
(14.2)
5 397 635
6 290 130
Loans and advances to banks
14.0
3 714 600
3 257 649
0.6
22 254 850
22 124 673
>200
491 154
24 892
0.5
2 143 121
2 133 208
1.0
35 674 697
35 319 049
Properties in possession
Other assets
Total assets
Liabilities
Deposits from banks
Deposits from customers
Debt securities
Corporate and Investment Banking
(CIB)
CIB's profit for the year increased significantly by 79.5% year
on year due to strong asset growth, which also contributed
significantly towards the 55.4% growth of NII. Both trading
revenue and electronic banking transaction fees were the
drivers for the 13.8% growth in NIR year on year. A more
focused approach was adopted to support key clients in
sectors like the NBFI, Mining & Metals, Consumer, Oil & Gas
and Power & Infrastructure which saw the CIB team provide
attractive solutions to valuable clients.
Other liabilities
Total liabilities
Equity
Total equity and liabilities
(3.0)
1 430 532
1 474 539
(3.2)
25 922 875
26 781 347
28.9
2 528 252
32.2
1 010 046
1961 123
763 764
(0.3)
30 891 705
30 980 773
10.3
4 782 992
4 338 276
1.0
35 674 697
35 319 049
2 Refer to the restatement narrative included in the accounting policy elections and restatement section for the restatements of loans and advances as well as deposit and
current accounts.View entire presentation