SBN : Annual Results for the year ended 31 December 2021

SBN Holdings Limited

Registration No. 2006/306

Registered in Namibia

ISIN Code: NA000A2PQ3N5

NSX Share Code: SNO

Short Name: SBN Holdings Limited (the "Company")

CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED 31 December 2021

Profit for the year declined by 11.9% from the N$421 million reported at the end of 2020 to N$371 million for the year ended 31 December 2021. While our profit after tax shows a decline after several years of strong growth until 2019, the group was able to contain this decline to a moderate level and emerge from a difficult year in sound financial health with strong capital and liquidity positions.

	Audited	Audited
	31 December 2021	31 December 2020
		Restated
	N$'000	N$'000
Net income before tax	569 933	608 330
Profit after tax	371 222	421 186
Number of ordinary shares in issue	522 471 910	522 471 910
Weighted average number of shares issued	522 471 910	522 471 910
Basic earnings per share (cents)	71	81
Net asset value per share (cents)	841	800
Final Dividend per share (cents)	15.00	14.00
Total Dividend per share (cents)	31.00	35.00
Headline Earnings per Share	71	81

The reduction in ROE from 10.2% to 8.7% is driven by reduced profit after tax for 2021.

Restatement

During the year the group noted the following restatement relating to the

group's previously published results.

1. During 2021, it was identified that when treasury bills were sold to, consumer and high net worth clients, the title of the instrument was not updated to reflect the names of the respective clients. Therefore, ownership of the instrument didn't transfer. The contractual rights to receive cash flows and the contractual obligation to pay these cash flows to the client remained with the company. This requires the treasury bill asset and liabilities to be disclosed separately and not netted off as was the practice in prior years. The error has been corrected by restating the comparatives in the statement of financial position and statement of cash flows. The correction of this error amount to a reclassification in the statement of financial position and statement of cash flow. The restatement has no impact on the reported profit for the year, earnings per share or net cash flows used in operating activities. The related interest income and interest expense are netted off in trading revenue in line with our accounting policy as detailed in the annual financial statements. The related notes were restated as required.
2. It was also identified during the current year that staff loans offered to employees at interest rates below the market rates were not fair valued upon initial recognition. The

error has been corrected by restating the comparative figures of the company's annual financial statements. The correction of this error amounts to a reclassification in the statement of financial position and income statement. The restatement has no impact on profit for the year, earnings per share or net cash flows used in operating activities. The related notes were restated as required.

3. The deferred tax assets and deferred tax liability were offset in the current year for Standard Bank Namibia Limited with comparatives restated as this subsidiary meets the requirements to offset in terms of IAS 12 'Income Taxes'. The subsidiary has a legally enforceable right to offset current tax assets and current tax liabilities and the deferred tax assets and the deferred tax liabilities relating to income taxes levied by the Namibian tax authority on the subsidiary, only.

Dividend

The Board recommended an ordinary Final dividend of 15 cents per share (2020: 14 cents per ordinary share).

The salient dates are as follows:
Last day to trade cum div:	6 May 2022
First day to trade ex - dividend:	9 May 2022
Record date:	13 May 2022
Payment date:	27 May 2022

Outlook for 2022

We have demonstrated our ability to adapt to a crisis, and we have emerged with a strong balance sheet which provides us with a solid basis on which to build.

Our outlook for 2022 was underpinned by the optimistic outlook for growth but we have replaced it with a more cautious outlook given the latest geopolitical developments and the potential impact it might have on the Namibian economy.

Our long-term outlook and priorities for 2025 are underpinned by being cautiously optimistic that economic activity will recover and exceed pre-Covid-19 levels. Our strategy for the next four years has been crafted to ensure we will return to revenue growth of between 5% to 9%; reduce our cost-to-income ratio to below 60%; achieve a credit loss ratio of 70 basis points to 100 basis points through-the-cycle; and a return of equity of between 15% and 18% by 2025.

2021 emphasised yet again that our people are the lifeblood of our business. We want to thank our colleagues for their outstanding diligence, resilience and care they showed to our customers and to each other during such testing times. We also want to thank you our customers for your continuous support. As we venture into 2022 with you, our clients, colleagues and shareholders, we are optimistic about the future…It Can Be.

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 audited financial statements, but the announcement itself is not audited.

Any investment decision should be based on the full announcement accessible on 25 March 2022 on our website https://www.standardbank.com.na/via the NSX link https://senspdf.jse.co.za/documents/2022/nsx/isse/sno/ResDec2021.pdf.

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By order of the Board

18 March 2022

HERBERT MAIER (CHAIRMAN); ISAC TJOMBONDE; JERRY MUADINOHAMBA; PETER SCHLEBUSCH; NATASHA BASSINGTHWAIGHTE; BIRGIT ROSSOUW; MARIA SHIVUTE DAX; ALPHEUS MANGALE; MERCIA GEISES; LETITEA DU PLESSIS.

REGISTERED OFFICE

1 Chasie Street, Kleine Kuppe, Windhoek; P.O. Box 3327, Windhoek, Namibia

AUDITORS

PricewaterhouseCoopers

344 Independence Avenue, Windhoek

SPONSOR

IJG Securities (Pty) Ltd; Member of the NSX; 4th Floor, 1@Steps, c/o Grove and Chasie Street, Kleine Kuppe, Windhoek, Namibia

TRANSFER SECRETARIES

Transfer Secretaries (Pty) Ltd; 4 Robert Mugabe Avenue; P.O. Box 2401, Windhoek, Namibia

Release date: 24 March 2022