Africa-Press – Namibia. Namibia’s banking sector assets rose by 3.1% to N$184.7 billion in the third quarter of 2025 due to an increase in loans and advances.
Deputy Bank of Namibia (BoN) governor Ebson Uanguta says the banking sector had enough capital and remained profitable during the quarter under review.
“The increase was primarily driven by the growth in the net loans and advances of the banking sector, supported by the increase in short-term negotiable securities,” he says.
Return on assets, which indicates the bank’s efficiency in making profit from its assets, stayed the same.
Meanwhile, return on equity, which is the bank’s overall profit of owners, increased from 19.8% to 20%.
“This is mainly due to an increase in net-interest and net-trading incomes,” Uanguta says.
The risk-weighted capital ratio declined from 18.1% during the second quarter of 2025 to 16.6% during the third quarter of 2025, mainly due to dividend payments.
The risk-weighted capital ratio involves the amount of capital the bank holds compared to its risks.
“Despite this decline, the level of capital remained above the prudential requirement of 12.5%,” Uanguta says.
The percentage of bad loans (called non-performing loans or NPLs) slightly decreased from 4.9% to 4.8%, but remained above pre-pandemic levels.
“The improvement in the NPLs was mainly observed in the mortgage loans category, following significant write-offs and recoveries.”
The banking sector also held a sufficient level of liquidity as the liquidity coverage ratio and net stable funding ratio remained comfortably above the minimum requirements during the third quarter of 2025.
This means the bank had enough cash and liquid assets to meet its short-term needs, with ratios well above the minimum rules.
Uanguta says given the current environment, no new macroprudential measures will be introduced.
“The current active macroprudential policy measure, alongside existing microprudential regulation and ongoing supervisory measures, are considered sufficient for the current macro-financial environment,” he says.
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