Group Structure of FNB Namibia Group
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FNB NAMIBIA GROUP ANNUAL REPORT 2007 Group Structure of FNB Namibia Group First National Bank Swabou Investments of Namibia Ltd (Pty) Ltd 100% 100% Swabou Life Assurance Company Ltd 100% FirstRand 59.23% Swabou Insurance Company Ltd 100% General Public 24.08% FNB Namibia Unit Trusts Ltd 100% GIPF RMB Asset Management 16.69% (Namibia) (Pty) Ltd 50% First National Asset Management and Trust Company of Namibia (Pty) Ltd 100% Talas Properties (Windhoek) (Pty) Ltd 100% 2 FNB NAMIBIA GROUP ANNUAL REPORT 2007 Features of the Group Results % Year ended 30 June Change 2007 2006 Share Performance Earnings per share (cents) 19 114.7 96.7 Headline earnings per share (cents) 19 113.1 95.0 Dividends per share (cents) - ordinary (Actual declared in financial period) 18 47.0 40.0 Dividends per share (cents) - special (Actual declared in financial period) 93.0 Closing share price (cents) - ordinary 13 792.0 700.0 Number of shares in issue (millions) - ordinary* 264.3 264.3 Weighted number of shares in issue (millions) - ordinary* 264.3 264.3 Dividend cover (times) - ordinary (based on actual shares in issue of 267.6 million) 2.4 2.4 Net asset value per share (cents) (5) 469.3 492.7 Dividend yield (%) - ordinary dividend >100 17.7 5.7 Earnings yield (%) - ordinary shares 5 14.5 13.8 Price to Book ratio 21 1.7 1.4 Price: Earnings ratio - ordinary shares (4) 6.9 7.2 * after consolidation of employee share trust Selected ratios Return on average shareholders' equity (%) 16 23.8 20.6 Return on average assets (%) 3 3.0 2.9 Cost to income ratio (%) 4 47.5 49.3 Capital ratios Capital adequacy ratio of the Banking Group (2) 19.8 20.3 Capital adequacy requirement (CAR) of Swabou Life (times) 64 4.6 2.8 Solvency margin of Swabou Insurance (%) 10 85.2 77.7 Return on investment Closing share price end of year (cents) 13 792.0 700.0 Opening share price beginning of year (cents) 17 (700.0) (600.0) Capital gain (cents) (8) 92.0 100.0 Dividends (cents) >100 140.0 40.0 Total return, including capital gain (cents) 66 232.0 140.0 Return on investment (%) 42 33.1 23.3 Share price - ordinary Dividends per share 900 100 95 93 792 800 90 700 700 80 600 600 70 60 500 446 460 395 47 50 42 400 336 40 40 33 32 300 30 25 25 200 20 100 10 cents 0 cents 0 2001 2002 2003 2004 2005 2006 2007 2001 2002 2003 2004 2005 2006 2007 Ordinary Special 3 FNB NAMIBIA GROUP ANNUAL REPORT 2007 FNB NAMIBIA GROUP ANNUAL REPORT 2007 Board of Directors John Kienzley Macaskill Mwahafar Ndakolute Herbert Waldemar Peter Vekuii Reinhard Rukoro Stuart Hilton Moir Christiaan Lilongeni Ranga Petrus Tukondjeni Nevonga Jabulani Richard Khethe Inge Ingenesia Zaamwani- Hans-Dietrich Voigts Ndilula Böttger Haikali Kamwi Date of birth: 07 March 1950 Date of birth: 11 November 1954 Date of birth: 23 June 1948 Date of birth: 26 October 1968 Date of birth: 26 March1963 Date of birth: 26 March 1938 Non-executive Director Date of birth: 19 February 1950 Date of birth: 07 September 1938 Chief Executive Officer Independent Non-executive Date of birth: 25 October 1968 Independent Non-executive Non-executive Director Date of birth: 11 November 1958 Independent Non-executive Appointed: March 2003 Independent Non-executive Independent Non-executive Appointed: March 2006 Director Independent Non-executive Director Appointed: July 2007 Independent Non-executive Chairman Director Director Director Director BCom (BEM) – University of LLM (International Law); Utter Appointed: November 2005 Appointed: May 2003 BCom (Banking) – University of Appointed: February 1988 Pretoria; CAIB / AEP – UNISA Appointed: November 2005 Appointed: February 1988 Barrister’s Degree; LLB (Hons); PMD – Harvard University; CAIB Appointed: November 2005 BTech (Business Administration) – Pretoria; MBA – BOND University Appointed: January 2000 Directorships: FNB Namibia Directorships: FNB Namibia MPA / DDA – Liverpool University LLB / BComm – University enrolled as Advocate of the High (SA); B.Comm; CIS Directorships: FNB Namibia Polytechnic of Namibia; Diploma in Directorships: FNB Namibia LLB (Hons) – London; LLM – Holdings Ltd (Chair), First National Holdings Ltd, First National Bank of Directorships: FNB Namibia Stellenbosch; Attorney’s admission Court of Namibia in 1992 Directorships: FNB Namibia Holdings Ltd, First National Bank of Human Resources Management – Holdings Ltd, First National Bank of Dundee Bank of Namibia Ltd (Chair), FNB Namibia Ltd, First National Bank of Holdings Ltd, Swabou Insurance to the Supreme Court in Windhoek Directorships: FNB Namibia Holdings Ltd, First National Bank of Namibia Ltd, Prosperity Health, Polytechnic of Namibia Namibia Ltd, First National Bank of Directorships: FNB Namibia Foundation, Swakop Textiles (Pty) Swaziland Ltd, First National Bank Company Ltd (Chair), Swabou Life in March 1965 Holdings Ltd, First National Bank of Namibia Ltd, Swabou Life Africa Personnel Services, Namibia Directorships: FNB Namibia Swaziland Ltd, First National Bank Holdings Ltd, First National Bank of Ltd, The Automobile Association of of Botswana Ltd, First National Assurance Company Ltd, Sovereign Directorships: FNB Namibia Namibia Ltd, Swabou, Insurance Assurance Company Ltd (Chair), Stevedoring Services, HANU Holdings Ltd, Government of Botswana Ltd Namibia Ltd, Namdeb Diamond Namibia, Wecke & Voigts Bank of Lesotho Ltd, Celpay Asset Management (Pty) Ltd, Power Holdings Ltd, First National Bank of Company Ltd, Swabou Life First Link Insurance Brokers Investments cc, Preferred Institutions Pension Fund Corporation (Pty) Ltd (CEO), Namdeb Investments (Pty) Ltd, Wecke & Holdings Ltd Line 2000 (Pty) Ltd, Stern Link Namibia Ltd, Swabou Insurance Assurance Company Ltd, FNB (Namibia) Pty Ltd, Stimulus Management Services, Namsea, Property (Pty) Ltd, NamGem Voigts (Pty) Ltd, Windhoek Uitspan Financial Services (Pty) Ltd, African Company Ltd, HAB Investments Foundation, RMB Asset Investments Ltd APS Investments, Eduloan Namibia, Diamond Manufacturing (Pty) Ltd, Sentrum (Edms) Bpk Directory Services (Botswana), Icon (Pty) Ltd Management (Namibia) (Pty) Ltd Chappa "AI Investments (Pty) Ltd, Diamond Board of Namibia, Fishcor Investment Ltd, Sovereign (Chair), Swabou Investments (Pty) Philco Twenty (Pty) Ltd, Namibia and Seaflower Lobster, NOSA Investments (Pty) Ltd, Sovereign Ltd, Namibia Chamber of Liquid Fuel, Ohorongo Holdings/ Namibia, Zantang Investments (Pty) Capital (Pty) Ltd, Reho-Electrical Commerce & Industry, Board of Cement, Tulongeni Family Trust Ltd, UNAM Council, Namibia Nature (Pty) Ltd Governors of the Fidelity Fund of (founder trustee) Foundation, Namibia Institute of the Law Society of Namibia Mining and Technology, Chamber of (trustee), Khomas Education & Mines Council, Junior Achievement Training Fund (Ministry of Education, Namibia, Vocational and Training Khomas Region) (trustee), Namibian Board, Namibia Chamber of Employers’ Federation (president) Commerce & Industry (President), NABCOA, XNET Trust Fund 4 5 FNB NAMIBIA GROUP ANNUAL REPORT 2007 FNB NAMIBIA GROUP ANNUAL REPORT 2007 Group Executive Committee (‘EXCO’) Caption for historic item honouring our past - embracing our future. Phillip Shiimi Conville Britz Sylvia Müller Dixon Norval Vekuii Reinhard Rukoro Stephen van Rhyn Leonard Haynes Etienne Britz Gideon Cornelissen Andreas Mwoombola Sarel van Zyl Treasurer Compliance Officer Head: Credit Head: Strategic Marketing Chief Executive Officer Head: Information Technology Chief Executive Officer Chief Executive Officer Group Chief Financial Officer Head: Human Resources Head: Branch Banking and and Communication FNB Namibia Group First National Bank Swabou Life Operations 6 7 FNB NAMIBIA GROUP ANNUAL REPORT 2007 Group Value-added Statement for the year ended 30 June N$ million 2007 2006 Value-added is the wealth the Group has been able to create by providing clients with a quality, value-added service. Value-added Income earned by providing financial services 1 212 926 Cost of services (669) (471) Value added by financial services 543 455 Non-operating and other income and expenditure 185 178 728 633 Value allocated To employees Salaries, wages and other benefits 256 35% 234 37% To providers of capital Dividends to shareholders 363 50% 91 14% To Government Tax 173 24% 118 19% To expansion and growth Depreciation, deferred tax and retained income (64) (9%) 190 30% 728 100% 633 100% Value allocated 60% 50% 2007 40% 2006 30% 2007 2006 20% 2007 2006 10% 2006 0% 2007 -10% -20% To employees To providers of capital To Government To expansion and growth 8 FNB NAMIBIA GROUP ANNUAL REPORT 2007 Share Analysis - ordinary shares Shareholders Shares held Number % Number % Range of shareholdings 1-999 967 38.91 391 868 0.15 1 000 – 1 999 424 17.06 542 769 0.20 2 000 – 2 999 201 8.09 487 798 0.18 3 000 – 3 999 85 3.43 287 745 0.11 4 000 – 4 999 55 2.21 241 101 0.09 5 000 – 9 999 212 8.53 1 428 785 0.53 Over 10 000 541 21.77 264 213 184 98.74 2 485 100.00 267 593 250 100.00 2007 2006 Stock exchange performance Share price (cents) - high for the year 792 700 - low for the year 695 600 - closing price per share 792 700 Number of shares traded ('000's) 1 522 5 337 Value of shares traded (N$ '000's) 10 954 35 537 Number of shares traded as percentage of issued shares (%) 0.57 1.99 Shareholders Shares held Number % Number % Category Corporate bodies 31 1.25 167 816 275 62.71 Nominee companies 6 0.24 78 989 381 29.52 Trust accounts 17 0.68 3 977 888 1.49 Private individuals 2 431 97.83 16 809 706 6.28 2 485 100.00 267 593 250 100.00 % Number of issued of shares shares Analysis of major shareholders FirstRand Bank Holdings Limited 158 503 363 59.23 Government Institutions Pension Fund* 44 653 499 16.69 Standard Bank (Namibia) Nominees (Proprietary) Limited 24 209 232 9.05 CBN Nominees (Proprietary) Limited 10 039 527 3.75 TransNamib Limited 6 900 009 2.58 FNB Employee Share Incentive Trust 3 270 372 1.22 * All Government Institutions Pension Fund’s shares are held by Standard Bank (Namibia) Nominees (Proprietary) Limited FirstRand Bank Holdings Limited, Standard Bank (Namibia) Nominees (Proprietary) Limited and Government Institutions Pension Fund are the only shareholders who beneficially hold more than 5% of the issued ordinary shares in the Company.