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


                                                                            June 2022                June 2021             December 2021

                                                                           Unreviewed               Unreviewed                 Audited

   Profit after tax attributable to ordinary shareholders (N$'000)               235 491                   189 334                 370 399
   Total comprehensive income attributable to ordinary
                                                                                 232 843                   185 370                 370 186
   shareholders (N$'000)
   Headline earnings (N$'000)                                                    236 338                   189 024                 371 292

   Number of ordinary shares in issue                                       522 471 910              522 471 910               522 471 910

   Weighted average number of ordinary shares in issue                      522 471 910              522 471 910               522 471 910

   Basic earnings per share (cents)                                                   45                        36                       71

   Headline earnings per share (cents)                                                45                        36                       71

   Ordinary dividend declared (N$'000)                                          104 494                    83 596                  156 742

   Net asset value per share (cents)                                                871                       819                      841

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 the 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.

      •     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.

SHORT FORM ANNOUNCEMENT

This short form announcement is the responsibility of the directors. It is only a summary of the information contained in the full announcement and does not
contain full or complete details.
The information in this announcement has been extracted from the unreviewed condensed interim financial statements, and the announcement itself is not
reviewed.

Any investment decision should be based on the full announcement and financial statements accessible from Tuesday, 6 September 2022, via our
website at https://www.standardbank.com.na/ and via the NSX link https://senspdf.jse.co.za/documents/2022/nsx/isse/sno/ResJun2022.pdf

Copies of the full announcement are available for inspection at the group’s registered office at no charge, weekdays during office hours.

By order of the Board


6 September 2022

Registered Office

1 Chasie Street, Windhoek, Namibia



AUDITORS

PricewaterhouseCoopers, 344 Independence Avenue, Windhoek, Namibia.


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