Namibia

First National Bank Namibia strengthened its leadership position in 2003 with the conclusion of a merger with the country’s last remaining building society, Swabou, creating a new broad-based financial services group. Significantly, foreign ownership of FNB Namibia, the only bank listed on the Namibia Stock Exchange, shrunk from 78% to 55% as a result of the merger, entrenching FNB Namibia as a truly Namibian financial banking group. More importantly, a 5% equity stake in the enlarged company was taken up by a broad-based black empowerment group, a prescient move against the backdrop of a growing urgency in the region to bring more indigenous Africans into ownership and management positions. FNB Namibia’s value proposition to all stakeholders was premised on the fact that the merger consolidated the banking operations of Swabou and First National Bank, while at the same time creating a platform for diversification in the areas of insurance and assurance. Customers get the benefits of a more diversified range of products and services, offered through existing FNB and Swabou service delivery points. “The merger achieved a long-sought-after goal: an improvement in economies of scale as a result of the dramatic expansion of our customer base. FNB Namibia continues to be most widely represented commercial bank in Namibia,” says CEO Lazarus Ipangelwa. “One of the most notable achievements was the successful consolidation and integration of accounts, core banking systems, people and delivery channels within 100 days.” Profits in 2003 were up 54% while return on equity was steady at 26%.