FirstRand Namibia Ltd (Incorporated in the Republic of Namibia) (Registration number: 88/024) ISIN: NA0003475176 | Share Code (NSX): FNB (“FirstRand Namibia Ltd” or “the Company”) Consolidated group reviewed results and cash dividend declaration for the period ended 31 December 2023 Financial Highlights % 31 December 31 December 30 June Change 2023 2022 2023 reviewed unaudited audited Headline earnings per share (cents) (1.7%) 312.9 318.2 587.9 Basic earnings per share (cents) (1.7%) 312.9 318.2 587.9 Ordinary interim dividends per share- (cents) (17.3) 173.52 209.70 368.14 Special dividends per share- (cents) n/a 186.85 186.85 Net asset value (NAV) (cents) (6.9%) 2 185 2 346 2 240 Return on equity (%) - 27.8 27.8 25.5 Cost to income ratio (%) 5% 48.3 46.0 49.0 Credit loss ratio (%) 92% 0.50 0.26 0.58 Headline Earnings (N$ million) (0.7%) 836 842 1 558 Pre-provision profit (N$ million) 4.9% 1 375 1 311 2 476 Advances (net of credit impairments) (N$ million) 9.7% 36 488 33 250 35 450 Deposits (N$ million) 14.6% 44 926 39 192 42 752 Total capital adequacy ratio (FirstRand Namibia consolidated group) (%) (10.4%) 16.4 18.3 17.9 Group financial performance The economic conditions placed pressure on the group’s performance for the six months ended December 2023 resulting in pre-provision profits growing with 5% to N$1 375 million from N$1 311 million. Overall income from operations increased 6% to N$2 522 million. Our headline earnings slightly decreased to N$836 million (2022: N$842 million). The FirstRand Namibia group’s return on equity also maintained a healthy 27.8% (2022: 27.8%). Net interest income growth was driven by the intrusive interest rate hike cycle and a strong average balance sheet growth. Net interest income increased 10% to N$1 464 million from N$1 328 million. Average interest- bearing assets increased by 12%, driven by average advances being up 11% vs PSCE for 1.9% in December 2023. Interest earned on advances grew with 29% whereas interest on investments also increased by 30%. The bank’s impairment charge increased to N$191 million (2022: N$89 million). This resulted in a credit loss ratio of 50 bps (2022: 26 bps). All provisions recognised reflect the groups best estimates against available data and scenario analysis and are measured suitably prudent given the prevailing risks in the economy. Inflows into NPLs are predominantly in the home loans, personal loans and commercial overdraft and term loan products. This increase in NPLs is expected given the lag to the rate hikes. Non-interest revenue (NIR) increased 9%, to N$1 248million from N$1 149 million underpinned by growth in net commission and fees, benefits of foreign currency trading and investment income. Net fee and commission income grew 5% to N$1 028 million, representing 85% of total NIR. Within this, bank charges increased 6%, which is more reflective of increased volumes by 12% and a price increase range between 4% and 6% effective 1 July 23. Operating expenses grew 15% to N$1 311 million from N$1 140 million, landing the group’s cost-to-income ratio at 48%. The group has remained well capitalised throughout the period, with levels well above the minimum regulatory requirements. Capital adequacy ratio was 16.4% (2022: 18.3%) and Tier 1 capital 15.5% for December 2023 (2022: 16.2%). Dividend declaration Notice is hereby given that an ordinary dividend of 173.52 cents per share (number 61) for the six months ended 31 December 2023 was declared on 14 February 2024. The last day to trade shares on a cum dividend basis will be on 15 March 2024 and the first day to trade ex-dividend will be 18 March 2024. The record date will be 5 April 2024 and the payment date 19 April 2024. Prospects Looking forward, the economic environment is sprouting early recovery signs with business sentiment picking up. In the short term the economic environment will remain under pressure but over the medium to longer term a strong recovery is anticipated. When domestic inflation and interest rates start trending downward, this will slowly provide real income relief to households and those businesses that cannot relay any price pressures, although we anticipate this relief to only start materialising towards the end of the calendar year. We now expect the economy to expand by lower than 2023 levels in 2024, before rising again in 2025. While lower than the recorded growth in 2022, these figures still represent solid prospective growth. Sectors underpinning our medium-term projections are mining, renewable energy, and tourism. Private consumption in real terms remains contracted, – the weakest since 2020. Furthermore, credit growth remains concentrated in the unsecured space, suggesting that households are increasingly turning to short term credit facilities to supplement shortfalls in income. In the short term, we expect consumption spending to remain under pressure given elevated food inflation, recent sharp fuel and electricity price hikes coupled with higher-for-longer interest rates. Growth forecasts remain well above the five-year historical pre-covid average. Fixed investment prospects are improving on the back of mining, renewable energy and oil and gas exploration. Added to this is resilient exports on the back of the robust mining activity. We also expect that the falling inflation and interest environment will aid a modest cyclical rebound in consumer spending. NIR is expected to benefit from continuing customer growth and proportionate volume growths. This will partly be offset by some tightening in customer spending as disposable income stays under pressure as well as regulatory impacts on our pricing structures. FirstRand Namibia expects its ROE to remain at the upper end of its long-term range of 21% to 24%. Short form announcement This short form announcement is the responsibility of the directors. It is only a summary of the information contained in the reviewed condensed consolidated financial results booklet and does not contain full or complete details. Any investment decision should be based on the full announcement accessible from Thursday, 29 February 2024, via the NSX link https://senspdf.jse.co.za/documents/2024/nsx/isse/fnb/FNB31Dec23.pdf and will also be available on our website at Financial results - FirstRand Namibia This announcement is itself not reviewed but is extracted from the reviewed information contained in the condensed consolidated financial results booklet for the period ended 31 December 2023. Board of Directors: P Grüttemeyer (Chairperson), J Coetzee, C Dempsey (Chief Executive), LD Kapere, MJ Lubbe*, R Makanjee**, IN Nashandi, ON Shikongo, LP Smit, E van Zyl *South African with Namibian Permanent Residence **South Africa Company Secretary: N Makemba Registered office: @ Parkside, 130 Independence Avenue, P O Box 195, Windhoek, Namibia, Registration No. 88/024, ISIN Code: NA0003475176, NSX Share Code: FNB. By order of the Board 29 February 2024 Sponsor: Cirrus Securities (Pty) Ltd, 35 Schanzen Road, Windhoek, P O Box 27, Windhoek, Namibia, Registration No. 98/463. Transfer secretary: Transfer Secretaries (Pty) Ltd, 4 Robert Mugabe Avenue, P O Box 2401, Windhoek, Namibia, Registration No. 93/713.