SBN HOLDINGS LIMITED Annual Report 2022
OUR PERFORMANCE
26
FUNDING AND LIQUIDITY
SBN HOLDINGS LIMITED
Annual report 2022
LOANS AND ADVANCES
BCB and CNHW
Home services
Vehicle and asset finance
Card and payments
Other loans and advances
CIB
Corporate lending
Sovereign lending
Gross loans and advances to customers
Banks
Gross loans and advances
Credit impairments on loans and advances
Net loans and advances
Change
%
2022
N$'000
(7.8)
17 692 082
19 190 012
(7.5)
11 822 800
12 776 0771
(8.9)
2 893 913
3 177 030
(1.4)
140 088
142 026
(8.4)
2 835 281
3 094 8791
2021
N$'000
Deposits from banks
Deposits from customers
Demand deposits
Card creditors
Savings deposits
Term deposits
Negotiable certificates of deposit (NCDs)
35.5
5 324 551
3 930 100
Deposits from customers and banks
51.8
5 057 176
3 332 015
Debt securities
(55.3)
267 375
598 085
(0.4)
14.0
1.3
(23.5)
23 016 633
23 120 112
3 714 600
3 257 6491
26 731 233
(761 783)
2.3
25 969 450
1 Refer to the restatement narrative included in the accounting policy elections and restatement section for the restatements of loans and advances.
26 377 761
(995 439)¹
25 382 322
Total funding
Change
%
2022
N$'000
20211
N$'000
(3.0)
1 430 532
1 474 439
(3.2)
25 922 875
26 781 347
(2.5)
3.8
(12.0)
1.2
(9.1)
18 989 429
27 037
19 472 335
3 018 670
603 177
26 036
685 688
2 982 189
3 284 562
3 615 099
(3.2)
27 353 407
28 255 886
28.9
2 528 252
1 961 123.
(1.1)
29 881 659
30 217 009
1 Refer to the restatement narrative included in the accounting policy elections and restatement section for restatements of deposits.
Deposits from customers and banks declined moderately by 3.2% to N$27 billion, predominantly driven by a decline in NCDs, savings
deposits and demand deposits. Debt securities increased by 28.9% due to our inaugural Green Bond issuance that raised N$400 million
across two notes. Term deposits increased by 1.2%, in line with the group's strategy to become compliant with the anticipated Basel III liquidity
requirements and aims to change our deposit mix. The group's liquidity position remained strong and within approved risk appetite and
tolerance limits.
Commentary
Gross loans and advances to customers
remained almost flat at N$23.0 billion in
the year. The CIB portfolio grew by 35.5%,
driven by strong growth in corporate
lending due to increased client activity.
The CHNW and BCB portfolios declined by
7.8% to N$17.7 billion, partly driven by the
8.4% decrease in other loans and
advances due to the acquisition of a
property portfolio as part of a debt
settlement transaction.
Composition of loans and
advances to customers (%)
2022
2021
2022
2021
Home services
51
55
Vehicle and asset finance
13
14
Card and payments
11
Other loans and advances
12
13
Corporate lending
22
14
Sovereign lending
13
Gross loans and advances
N$m
30 000
25 000
20 000
15 000
10 000
5000
0
||||||
2017
2018
2019
2020
20 211 22 309 26 235 24 950
2021
2022
26 378 26 731
Capital adequacy ratio
%
19.0
Capital management
18.0
The group maintained its strong capital adequacy
ratios with total regulatory capital at 17.7%
(2021: 14.7%) and total tier 1 capital at
15.6% (2021: 11.9%).
17.0
16.0
15.0
14.0
13.0
The group proactively manages its capital levels
12.0
to support business growth, maintain deposits
and creditor confidence. This close monitoring
allows the group to create value for shareholders
while ensuring regulatory compliance.
11.0
10.0
2017
2018
2019
2020
2021
2022
-- 15.2
14.4
16.0
14.7
14.7
17.7
- 13.3
12.9
14.7
13.3
11.9
15.6
--Total capital adequacy ratio
--Tier I adequacy ratio
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