STAFF WRITER
Total banking sector assets in Namibia have increased by 3.8 percent to N$195.1 billion, driven mainly by growth in net loans and advances, supported by higher holdings of short-term negotiable securities, the latest assessment by the Macroprudential Oversight Committee (MOC) of the Bank of Namibia shows.
Bank of Namibia Governor Ebson Uanguta on Tuesday said although profitability remained strong, the return on assets declined from 2.8 percent to 2.3 percent, while the return on equity decreased from 21.8 percent to 18.1 percent during the first quarter of 2026, mainly reflecting lower net interest and net trading income.
The Central bank also noted that credit risk continued to improve, with the non-performing loan ratio declining from 4.3 percent in the fourth quarter of 2025 to 4.2 percent in the first quarter of 2026, largely owing to write-offs and recoveries in the mortgage loan portfolio.
“Similarly, liquidity remained adequate, with both the liquidity coverage ratio and net stable funding ratio improving further while remaining comfortably above the minimum regulatory requirements,” Uanguta said.
According to the apex bank capital levels in the country’s banking sector also remained strong, with the capital adequacy ratio broadly stable at 17.2 percent in the first quarter of 2026.
The assessment also shows that the Non-Bank Financial Institutions (NBFIs) sector remained financially sound and resilient during the first quarter of 2026, underpinned by continued asset growth and sustained demand for financial services. Retirement fund assets increased by 0.1 percent quarter-on-quarter and 14.9 percent year-on-year, reaching N$303.9 billion.
“Similarly, assets under management in collective investment schemes expanded by 2.5 percent on a quarterly basis and 16.7 percent year-on-year to N$126.5 billion,” Uanguta said.
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