Standard Bank Namibia Limited Registration No. 2006/306 Registered in Namibia (“SBN Holdings Limited”) Issuer code: SBN02 ISIN no.: ZAG000178419 Issuer code: SBN03 ISIN no.: ZAG000178427 UNREVIEWED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2022 Overview of financial performance Locally, the Namibian economy caught the global economy’s tailwinds, with recoveries evident in mining, manufacturing, transport, storage and financial services. Coupled with base effects, following sharp contractions in 2020 and 2021, first quarter GDP growth was strong at 5.3% in contrast to a decline of 4.9% in Q1 2021. The rising tide of growth and economic activity was met with a surge in headline inflation from 3.6% during 2021 to 6% in June 2022 as rising international oil prices, soaring food prices, global supply disruptions and low base effects, materialised. Consequently, the Bank of Namibia followed the global trend and raised the repo rate to 4.75% to tame inflation and maintain the one-to-one peg with the Rand. The global stage was dominated in the first half of 2022 by increasing geopolitical tension culminating in an invasion of Ukraine by Russia. The disruption, devastation and displacement experienced by Ukrainians set in motion a regrettable humanitarian crisis. Sanctions were imposed on Russia which exacerbated supply shocks to global logistics. Notwithstanding, the global economy has shown promising signs of recovery in 2022 as Covid-19 largely became endemic to our existence, bar China, with contrastingly low infection rates in the first half of 2022 versus first half 2021. Despite the daunting macro-economic environment, Standard Bank Namibia Limited was awarded the accolade of the Best Investment Bank in Namibia at the 2021 Global Banking and Finance Awards held earlier this year. Our Corporate and Investment Banking segment continued their stellar performance by launching our inaugural Green Bond raising N$400 million across two notes, a N$200 million 3-year note and a N$200 million 5-year note. The auction was oversubscribed 2.41 times on issuance size with impressive spreads. Proceeds of the green bond issuance will finance eligible renewable energy projects in Namibia in accordance with the Standard Bank Group Sustainable Bond Framework. The SEE impact areas are: Infrastructure, Climate Change and Sustainable Finance. To date, the Green Bond funding has been used to finance the first corporate green loan outside of South Africa which is the first solar power plant operational under the modified single-buyer model. Our transformation journey is well underway. Our three-segment model is delivering relevant, innovative and efficient digital solutions with digital banking volumes showing unprecedented increases. We believe that our strategy is achieving the desired outcomes as we see promising signs as reflected in our first-half 2022 results. Our customers continue to confirm their belief in our strategy and service with our strengthening balance sheet during the reporting period. Profit after tax has shown a strong rebound with our return on equity trending upwards. We are making positive strides to achieve our 2025 priorities. Our 1H22 revenue growth of 9.6% exceeds our growth targets of between 5.0% and 9.0%. Our cost-to-income ratio decreased to 64.5%, moving in the right direction to be below 60% by 2025. Moreover, our credit loss ratio of 100 bps is within our 2025 target range of 70bps to 100bps through-the-cycle. We are on track to achieve the returns on equity 2025 targets of 15%-18% with an improvement in our return of equity from 9.0% in June 2021 to 10.6% in June 2022. Dividends Notice is hereby given that an interim cash dividend for the six months ended 30 June 2022 of 20 cents per ordinary share was declared on 30 August 2022. Last day to trade cum dividend: 23 September 2022 First day to trade ex-dividend: 26 September 2022 Record date: 30 September 2022 Payment date: 14 October 2022 Highlights from the group’s results for the six months ended 30 June 2022 • The Group’s 1H22 profit after tax grew by 24.1% period-on-period to N$235.3 million. Modest balance sheet growth, stronger signals of a recovering economy and the positive endowment effect ensuing from repo rate increases has, driven substantial performance growth in 2022. • Net interest income showed good growth stemming from the hikes in the repo rate, strong loans and advances growth and favourable restructure of the composition of the deposits and current accounts. The net interest margin improved to 4.3% (31 December 2021: 3.8%). • Non-interest revenue was up 7.7%, continuing to grow above inflation levels to N$615 million. Good margins on trading revenue and growing use of digital channels, notably electronic banking and instant cash, were the main contributors. Excluding the reduction in other gains and losses on financial instruments in 1H22 versus 1H21, the growth in non-interest revenue has been 10.7% over the reporting period. Non- interest revenue for 1H22 has recovered well and exceeds 2019 levels of N$608 million, supported by growth in our customer base and increased adoption of our digital channels. • Credit impairment charges increased by 7.2% to N$132 million and the credit loss ratio remained flat period-on-period. This remains a continued focus area. • Growth in operating expenses of 6.8% was driven by rising inflation of 6.0% for June 2022, ‘Change-the-Bank’ technology costs to support client growth strategies, planned intergroup service management cost increases and increased operating costs as employees return to work. Our costs are robustly monitored and cost containment measures are in place to keep expenses within budgetary constraints. • Gross loans and advances to customers increased by 2.2% to N$23.4 billion period-on-period driven by growth in vehicle and asset finance loans of 6.5%, corporate lending growth of 6.4% and growth in other loans and advances of 9.6% with signs of recovery being seen in credit demand. The decline in sovereign lending is attributed to good performance on structured transactions, resulting in reduced exposure. Loans and advances to banks increased by 133.9% following temporary placements with the central bank, primarily. Highlights from the group’s results for the six months ended 30 June 2022 (continued) • Deposits and current accounts from customers grew by 11.2% to N$26.4 billion for the period ended 30 June 2022. The largest contributors were increases in cash management deposits, call deposits and term deposits. NCDs decreased while term and call deposits increased as the group continues their strategy to become compliant with the anticipated Basel III liquidity requirements. The strategy also supports our endeavour to change our depositor mix. • Financial investments increased with N$738 million period-on-period, however, excluding the pledged assets of N$781 million from the June 2021 balance, there is a 1% decline period-on-period. Trading assets declined by 15.6%, resulting from government bonds sold and the repurchase agreement with South Africa that matured during the period. Growth in derivatives assets was due to an increase in client demands for foreign exchange forwards to hedge currency position, as well as the mark to market movements on existing interest rate swaps. These client transactions are done back-to-back with South Africa, which contributed to the increase in our derivative liabilities. • The group maintained strong capital ratios, with a total capital adequacy ratio of 15.6%. The group’s liquidity position remained strong and within approved risk appetite and tolerance limits. Outlook Global GDP grew by 6.1% in 2021 and is expected to improve by 3.6% in 2022 and 2023. Risks to the banking sector are forecast to remain broadly in line with 2021. Upward pressure on inflation is expected to persist for the remainder of 2022 as the Russia-Ukraine conflict is expected to continue. In response to macroeconomic pressures, further increases to the repo rate are expected in the second half of 2022, which might continue to have an impact on business confidence and will certainly impact disposable income. Our long-term outlook and priorities are underpinned by cautious optimism for recovery in economic activity and growth exceeding pre-Covid-19 levels in the medium term. One of our key focus areas for 1H22 is for Standard Bank Namibia Limited, a wholly-owned subsidiary of SBN Holdings Limited to finalise and embed the acquisition of the property-owning entities as part of a debt settlement transaction. Financial close was reached on 3 August 2022. Regulatory approvals from the Bank of Namibia, Namibia Competition Commission and the South African Reserve Bank have also been obtained. We have seen changes in the composition of our Board of Directors in the reporting period, with Alpheus Mangale, a Standard Bank Group appointed director resigning from the Standard Bank Group and Jerry Muadinohamba, a long-serving director, who retired from the board. It is with heartfelt gratitude that we wish them well on the next chapter of their journeys. We welcome Silke Hornung to the Board and look forward to her contribution. The board of directors and our stakeholders played invaluable roles in our ability to deliver our strategic objectives and we are celebrating a solid half- year mark. Thank you to the staff and clients who have shown resilience, tenacity and commitment. We continue into the second half with the rallying call that ‘IT CAN BE’, because we are bold, we are responsive, we are knowledgeable, we are inventive and are committed to ensure we grow Namibia and its people. External review The external auditors, PricewaterhouseCoopers did not review the condensed consolidated interim statement of financial position of SBN Holdings Limited as at 30 June 2022, and the related condensed consolidated interim statement of comprehensive income, condensed consolidated interim statement of changes in equity and condensed consolidated interim statement of cash flows for the six months then ended, and selected explanatory notes. Any investment decision should be based on the full announcement and financial statements accessible from Tuesday, 6 September 2022, via the NSX website and also available on our website at https://www.standardbank.com.na/. Copies of the full announcement are available for inspection at the group’s registered office at no charge, weekdays during office hours. H Maier M Geises Chairman Chief Executive AUDITORS PricewaterhouseCoopers, 344 Independence Avenue, Windhoek, Namibia. 6 September 2022 Registered Office 1 Chasie Street, Windhoek, Namibia Directorate BOARD OF DIRECTORS: HERBERT MAIER (CHAIRMAN) ISAC TJOMBONDE JERRY MUADINOHAMBA PETER SCHLEBUSCH NATASHA BASSINGTHWAIGHTE BIRGIT ROSSOUW MARIA SHIVUTE DAX ALPHEUS MANGALE MERCIA GEISES LETITEA DU PLESSIS Debt Sponsor in South Africa Standard Bank of South Africa Limited