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AE272706-C056-48B8-986B-733FC1CF98F5.png9FC11A07-3843-4044-A56F-BDB3D2DD9F29.png4F1E6238-C5DA-4A83-9FF2-6F2B780A54C2.png4F1E6238-C5DA-4A83-9FF2-6F2B780A54C2.png05C0B5BA-33E5-4407-9EAF-B45BD7E1FBC4.png768886E5-CCC3-48C4-A4FC-7302C61CD440.pngInstruction:

The following two documents for the Namibian banking industry are provided to you:

i. A9030F00-DEC4-4460-BD68-D13218A0A556.jpegCA6E0B11-A041-4726-838E-47D420202E2A.jpeg6D60658F-ACAA-4F16-B0D5-AF9DD050EBBE.jpeg1683CDBF-C0E6-4922-9DD5-83C56F74A488.jpegAggregated Balance Sheet (BIR 100)and 

ii. Aggregated Income Statement (BIR 201)

 

Required:

Using the above two documents, analyse the Namibian banking sector by calculating (show your calculations) and interpreting the following ratios for the third and fourth 

quarter of 2019: ​​​​​​​ ​ 

1.Total Risk Weighted Capital Ratio​​​​

2 .Non-Performing loans ratio ​​​​​

3.Return on Equity ​​ ​​​​​

4 .Return on Assets​​ ​​​​​

5 .Total Loans/Total Deposits ​​​​​

Image transcriptions

Of MTC LTE 01:17 @ 27% <B...k CAPITAL ADEQUENCY BASEL 111 Bank of Namibia NAMIBIAN BANKING INDUSTRY COMPUTATION OF CAPITAL BASE BASEL II QUARTERLY FIGURES FOR THE YEAR 2020 (N$'000) Constituents of Capital Line no 31-Mar 30-Jun 30-Sep 31-Dec TIER 1 CAPITAL Paid-up ordinary shares 735,100 Paid-up non-cumulative perpetual preference shares 215,085 Share premium 59,524 Retained profits/(accumulated losses) 292,222 General Reserves 23,061 Minority interests (consistent with the above capital constituents) Sub-Total (Sum of Line items 1 to 7) 8 1,324,993 Deduct: Goodwill related to consolidated subsidiaries, subsidiries deconsolidated for regulatory capital purposes, and proportional consolidation 9 Deduct: Investments in unconsolidated banking & financial subsidiary companies 10 Deduct: Investment in the capital of other banks & financial institutions and significant and minority investments in other financial entities Deduct:Increase in equity capital resulting from a securitisation transactions (e.g. Capitalised future marging income, gains on sale) Deduct: 50% investments in securitisation exposure for third party investors with long-term credit ratings of B+ abd below, and in unrated exposures. 13 Deduct: 50% of credit -enhancing interest only strips, net of any increases in equity capital resulting from securitisation transaction. 14 Deduct: 50% of investments in securitisation exposures for third party investors with short-term credit ratings of below A-3/P-3/R-3 and in unrated exposures. 15 Deduct:50% of retained securitisation exposures for originating banks that are rated below investment grade(below BBB-) , or that are unrated. 16 NET-Total TIER 1 CAPITAL (line item 8 less line items 9 to 16) 17 1,324,993 TIER 2 CAPITAL Hybrid (debt/equity) capital instruments Eligible subordinated term debt (limited to 50% of total Tier 1 capital) 18 19 Asset revaluation reserves 20 General provisions (general loan loss reserves (limited to 1.25% of total risk- weighted assets) 21 33,481 Current un audited profits (if applicable)- [see Note 1] 22 16.271 Sub-total (sum of line items 18 to 22) 23 49,752 Deduct: back-to-back placements of new tier 2 capital, arranged either directly or indirectly , between banking and financial institutions. 24 Deduct: 50% of credit-enhancing interest -only strips, net of any increases in equity capital resulting from sec tisation transaction. 25 Deduct: 50% of investments in unconsolidated subsidiaries and in subsidiaries de consolidated for regulatory capital purposes , net of goodwill that is deducted from tier 1 capital. 26 Deduct: 50% of investments in securitisation exposures for third party investors with long-term credit- rating of B+ and below, and in unrated exposures. 27 Deduct:50% of investments in securitisation exposures for third party investors with short-term credit-rating below investment grade (below BBB-), or unrated exposures 28 Deduct:50% of retained securitisation exposures for originating banks that are rated below investment grade (below BBB-) , or that are unrated 29 NET-TOTAL TIER 2 CAPITAL (line item 23 less items 24 to 29) 30 49,752 TIER 3 CAPITAL Eligible short-term subordinated debt (see Note 2) TOTAL TIER 3 CAPITAL Tier 1 available for Market risk 1,200,716 ELIGIBLE TIER 3 CAPITAL (See Note 3) ELIBLE TIER 2 and TIER 3 CAPITAL (See Note 4) TOTAL QUALIFYING CAPITAL (sum of line items 17 and 35) 49,752 1,374,745 COMPUTATION OF RISK -WEIGHTED ASSETS 1. Credit Risk: Standardised Approach Total Risk-Weighted Amount for Credit Risk 37 1,603,686 2. Operational Risk: (see Note 5): 2 (a). Basic Indicator Approach : Calibrated risk-weighted amount 38 2 (b). The Standardised Approach: Calibrated risk-weighted amount 39 56,131 Calibrated Risk-Weighted Amount for Operational Risk 40 1 15,565 171,696 3. Market Risk: Standardised Approach Calibrated Risk-Weighted Amount for Market Risk 1,568 AGGREGATE RISK-WEIGHTED ASSETS (sum of line items 37; 40; and 41) 42 1,776,949 TOTAL RISK-WEIGHTED CAPITAL RATIO (line item 54 divided by line item 66) (minimum of 10%) 42 77.4% OF WHICH: TIER 1 RISK-BASED CAPITAL RATIO (line item 17 divided by line item 42) (minimum of 7%) 74.6% TIER 2 RISK-BASED CAPITAL RATIO (line item 30 divided by line item 42) 45 2.8% TIER 3 RISK-BASED CAPITAL RATIO (line item 32 divided by line item 42) 46 0.0% ADDITIONAL CAPITAL SPECIFIED BY THE REGULATOR 47 Total risk-weighted capital ratio (including additional capital specified) 48 77.4% OTHER CAPITAL MEASURES Gross Assets (total assets plus general and specific provisions) 49 2,527,849 TIER 1 LEVERAGE RATIO (line item 17 divided by line item 47) (minimum of (6%) 50 52.4% accordance with the provisions of BID-5 Note 2: Only available to co. apital charge for market risk

NAMIBIAN BANKING INDUSTRY DATA PRODUCED BY THE BANKING SUPERVISION DEPARTMENT Quarterly Financial Information 31 December 2019 N$'Millions BALANCE SHEET Mar-19 Jun-19 Sep-19 Dec-19 Total Assets and Percentage Change TOTAL ASSETS 136,881 138,031 142,779 142,195 137 138 Cash and balances 15,294 13,793 14,943 Net Loans and Advances 95,703 101.224 3.0% Short-Term Negotiable Securities 15,143 16,016 16.274 Trading & Investment Securities 5,333 5,682 6,408 6.495 2.0% Property, plant & equipment 2,194 2.252 2.347 Other Assets 3,214 2,347 3,970 2,791 1.0% TOTAL CAPITAL AND LIABILITIES 136,88 138,031 142,195 0.0% Bank Funding 5,291 4,094 5,280 5,670 -1.0% Non-bank Funding 111,174 114,178 1 17,191 115,942 Jun-19 Sep-19 Dec-19 Share Capital and Reserves 15,473 15.34 16,398 Total Assets %% Change in Total Assets (QoQ) Other Liabilities 4.943 4,050 4,965 4,186 INCOME STATEMENT (for 3 months ended 30 June 2019) 60.0% Efficiency & ROE Ratios Interest Income 3,030 3,210 3,12 3,339 50.0% Interest Expense 1,618 1,714 1.653 1,781 40.0% Net Interest Income 1,412 1,496 1,474 1,558 30.0% Provision Charges & Write-offs 152 276 20.0% Non-interest income 1.040 1.062 1,142 1,172 Total Income 2,452 2,558 2,61 2,730 10.0% Non-Interest Expense 1,398 1,384 1,433 1.533 0.0% 619 Sep-19 Dec-19 Net Income after Tax 647 677 793 CAPITAL ADEQUACY Total ECR Basel III (DSIBs) 16.0% Net Total CET1 Capital 3,304 15.8% Total Eligible Tier 1 Capital 13,320 12,812 13,30 15.4% Net Total Tier 2 Capital 2,712 2,800 2,382 2,357 15.2% Total Eligible Capital 6,032 5,194 15,662 15.0% Aggregate Risk-weighted Assets 100,641 100,972 103,575 102,209 Total Eligible Capital Ratio 15.9% 15.9% 14.7% 15.3% 14.4% 14.2% CET 1 Capital Ratio 13.2% 13.1% 12.4% 13.0% 14.0% Tier 2 Capital Ratio 2.7% 2.8% 2.3% 2.3% Mar-19 61-un Sep-19 Dec-19 Basel II (Non-DSIBs) Total Qualifying Capital 1,200 1,193 1,221 1,357 1,168 120.0% Total RWCR Tier 1 Capital 1,186 1,178 1.284 Tier 2 Capital 14 25 Risk Weighted Assets 1,217 1,213 1,255 1,685 80.0% Gross Assets 1,611 1,545 1,715 2,455 Tier 1 Leverage Ratio 73.6% 68.7% 52.3% 40.0% Tier 1 RWCR 97.4% 96.3% 93.9% 76.2% 20.0% Tier 2 RWCR 1.2% 2.0% 3.4% 4.3% 0.0% Total RWCR 98.6% 98.3% Mar-19 61-unr Sep-19 Dec- 19 ASSET QUALITY Non-performing loans 3,712 4,456 4,741 4,994 NPL Ratio Overdue Loans 3,15 9.682 3.108 Specific Provisions 839 913 974 NPL Ratio 5.00% 3.8% 4.5% 4.7% 4.8% Specific provisions/NPLs 19.0 18.8 19.3% 4.00% 19.50 Overdue loans/ Total Loans 8.40 9.8% 9.6% 8.8% 3.00% 2.00% PROFITABILITY 1.00% Return on Equity (ROE) 16.1% 16.6% 17.4% 20.0% 0.00% Return on Assets (ROA) 1.8% 1.9% 1.9% 2.2 Mar-19 Jun-19 Sep-19 Dec-19 Cost-to-Income Ratio 54.1% 56.20 -NPLs as % of total loans Liquid Assets Held /Liquid Assets Required 167.2% 160.3% 152.6% Liquid Assets/Total Assets 14.4% 14.1% 14.0% 13.4% Total Loans/Total Assets 70.3% 71.4% 69.7% 71.6 Total Loans/Total Deposits 89.2% Bank of Namibia Disclaimer: The contents of this publication are intended for general information only and are not intended to serve as financial or other advice. While every precaution is taken to ensure the accuracy of information, the Bank of Namibia shall not be liable to any person for inaccurate information or opinions contained in this publication. For any queries contact [email protected] or at telephone number 283 5040

Bank of Namibia NAMIBIAN BANKING INDUSTRY COMPUTATION OF CAPITAL BASE BASEL II QUARTERLY FIGURES FOR THE YEAR 2020 (N$'000) Constituents of Capital Line no 31-Mar 30-Jun 30-Sep 31-Dec TIER 1 CAPITAL Paid-up ordinary shares 735,100 Paid-up non-cumulative perpetual preference shares 15,085 Share premium 59,524 Retained profits/(accumulated losses) 292,222 General Reserves 23,061 Minority interests (consistent with the above capital constituents) Sub-Total (Sum of Line items 1 to 7) 1,324,993 Deduct: Goodwill related to consolidated subsidiaries, subsidiries deconsolidated for regulatory capital purposes, and proportional consolidation Deduct: Investments in unconsolidated banking & financial subsidiary companies Deduct: Investment in the c al of other banks & financial institutions and significant and minority investments in other financial entities Capitalised future marging income, gains on sale) securitisation transactions (e.g. Deduct: 50% investments in securitisation exposure for third party investors with long-term credit ratings of B+ abd below, and in unrated exposures. Deduct: 50% of credit -e capital resulting from securitisation transaction. ly strips, net of any increases in equity 14 short-term credit ratings of below A-3/P s for third party investors with -3/R-3 and in unrated exposures. Deduct:50% of retained securitisation exposures for originating banks that are 15 rated below investment grade(below BBB-) . or that are unrated. NET-Total TIER 1 CAPITAL (line item 8 less line items 9 to 16) 16 1,324,993 TIER 2 CAPITAL Hybrid (debt/equity) capital instruments Eligible subordinated term debt (limited to 50% of total Tier 1 capital) 18 19 Asset revaluation reserves 20 General provisions (general loan loss reserves (limited to 1.25% of total risk- weighted assets) 33,481 Current unaudited profits (if applicable)- [see Note 1] 16,271 Sub-total (sum of line items 18 to 22) 49,752 Deduct: back-to-back placements of new tier 2 capital, arranged either directly or indirectly , between banking and financial institutions. Deduct: 50% of credit-enhancing interest -only strips, net of any increases in equity capital resulting from securitisation transaction. 25 Deduct: 50% of investments in unconsolidated subsidiaries and in subsidiaries deconsolidated for regulatory capital purposes , net of goodwill that is deducted from tier 1 capital. 26 Deduct: 50% of investments in securitisation exposures for third party investors with ong-term credit- rating of B+ and below, and in unrated exposures. 27 Deduct:50% of investments in securitisation exposures for third party investors with exposures short-term credit-rating below investment grade (below BBB-), or unrated 28 Deduct:50% of retained securitisation exposures for originating banks that are rated below investment grade (below BBB-) , or that are unrated. 29 NET-TOTAL TIER 2 CAPITAL (line item 23 less items 24 to 29) 49,752 TIER 3 CAPITAL Eligible short-term subordinated debt (see Note 2) TOTAL TIER 3 CAPITAL Tier 1 available for Market risk 1,200,716 ELIGIBLE TIER 3 CAPITAL (See Note 3) ELIBLE TIER 2 and TIER 3 CAPITAL (See Note 4) TOTAL QUALIFYING CAPITAL (sum of line items 17 and 35) 49,752 1,374,745 COMPUTATION OF RISK -WEIGHTED ASSETS 1. Credit Risk: Standardised Approach Total Risk-Weighted Amount for Credit Risk 2. Operational Risk: (see Note 5): 37 1.603.686 2 (a). Basic Indicator Approach : Calibrated risk-weighted amount 56,131 2 (b). The Standardised Approach: Calibrated risk-weighted amount 15.565 Calibrated Risk-Weighted Amount for Operational Risk 171,696 3. Market Risk: Standardised Approach Calibrated Risk-Weighted Amount for Market Risk 1,568 AGGREGATE RISK-WEIGHTED ASSETS (sum of line items 37; 40; and 41) 42 1,776,949 TOTAL RISK-WEIGHTED CAPITAL RATIO (line item 54 divided by line item 66) (minimum of 10%) 43 77 .4% OF WHICH: TIER 1 RISK-BASED CAPITAL RATIO (line item 17 divided by line item 42) (minimum of 7%) 74.6% TIER 2 RISK-BASED CAPITAL RATIO (line item 30 divided by line item 42) 45 2.8% TIER 3 RISK-BASED CAPITAL RATIO (line item 32 divided by line item 42) 46 0.0% ADDITIONAL CAPITAL SPECIFIED BY THE REGULATOR Total risk-weighted capital ratio (including additional capital specified) 77.4% OTHER CAPITAL MEASURES Gross Assets (total assets plus general and specific provisions) 2.527.849 TIER 1 LEVERAGE RATIO (line item 17 divided by line item 47) (minimum of 6%) 50 52.4% Note 1: All banking institutions shall tro ance with the provisions of BID-5 al charge for market risk Note 3: Limited to 250% of Tier 1 capital an pport market risk Note 4: The sum of eligible Tier 2 and Tier 3 capital shall not exceed 100% of eligible Tier 1 capital Note 5: Only complete the Operational Risk approach which is applicable to your institution

Bank of Namibia NAMIBIAN BANKING INDUSTRY COMPUTATION OF CAPITAL BASE BASEL II QUARTERLY FIGURES FOR THE YEAR 2020 (N$'000) Constituents of Capital Line no 31-Mar 30-Jun 30-Sep 31-Dec TIER 1 CAPITAL Paid-up ordinary shares 735,100 Paid-up non-cumulative perpetual preference shares 15,085 Share premium 59,524 Retained profits/(accumulated losses) 292,222 General Reserves 23,061 Minority interests (consistent with the above capital constituents) Sub-Total (Sum of Line items 1 to 7) 1,324,993 Deduct: Goodwill related to consolidated subsidiaries, subsidiries deconsolidated for regulatory capital purposes, and proportional consolidation Deduct: Investments in unconsolidated banking & financial subsidiary companies Deduct: Investment in the c al of other banks & financial institutions and significant and minority investments in other financial entities Capitalised future marging income, gains on sale) securitisation transactions (e.g. Deduct: 50% investments in securitisation exposure for third party investors with long-term credit ratings of B+ abd below, and in unrated exposures. Deduct: 50% of credit -e capital resulting from securitisation transaction. ly strips, net of any increases in equity 14 short-term credit ratings of below A-3/P s for third party investors with -3/R-3 and in unrated exposures. Deduct:50% of retained securitisation exposures for originating banks that are 15 rated below investment grade(below BBB-) . or that are unrated. NET-Total TIER 1 CAPITAL (line item 8 less line items 9 to 16) 16 1,324,993 TIER 2 CAPITAL Hybrid (debt/equity) capital instruments Eligible subordinated term debt (limited to 50% of total Tier 1 capital) 18 19 Asset revaluation reserves 20 General provisions (general loan loss reserves (limited to 1.25% of total risk- weighted assets) 33,481 Current unaudited profits (if applicable)- [see Note 1] 16,271 Sub-total (sum of line items 18 to 22) 49,752 Deduct: back-to-back placements of new tier 2 capital, arranged either directly or indirectly , between banking and financial institutions. Deduct: 50% of credit-enhancing interest -only strips, net of any increases in equity capital resulting from securitisation transaction. 25 Deduct: 50% of investments in unconsolidated subsidiaries and in subsidiaries deconsolidated for regulatory capital purposes , net of goodwill that is deducted from tier 1 capital. 26 Deduct: 50% of investments in securitisation exposures for third party investors with ong-term credit- rating of B+ and below, and in unrated exposures. 27 Deduct:50% of investments in securitisation exposures for third party investors with exposures short-term credit-rating below investment grade (below BBB-), or unrated 28 Deduct:50% of retained securitisation exposures for originating banks that are rated below investment grade (below BBB-) , or that are unrated. 29 NET-TOTAL TIER 2 CAPITAL (line item 23 less items 24 to 29) 49,752 TIER 3 CAPITAL Eligible short-term subordinated debt (see Note 2) TOTAL TIER 3 CAPITAL Tier 1 available for Market risk 1,200,716 ELIGIBLE TIER 3 CAPITAL (See Note 3) ELIBLE TIER 2 and TIER 3 CAPITAL (See Note 4) TOTAL QUALIFYING CAPITAL (sum of line items 17 and 35) 49,752 1,374,745 COMPUTATION OF RISK -WEIGHTED ASSETS 1. Credit Risk: Standardised Approach Total Risk-Weighted Amount for Credit Risk 2. Operational Risk: (see Note 5): 37 1.603.686 2 (a). Basic Indicator Approach : Calibrated risk-weighted amount 56,131 2 (b). The Standardised Approach: Calibrated risk-weighted amount 15.565 Calibrated Risk-Weighted Amount for Operational Risk 171,696 3. Market Risk: Standardised Approach Calibrated Risk-Weighted Amount for Market Risk 1,568 AGGREGATE RISK-WEIGHTED ASSETS (sum of line items 37; 40; and 41) 42 1,776,949 TOTAL RISK-WEIGHTED CAPITAL RATIO (line item 54 divided by line item 66) (minimum of 10%) 43 77 .4% OF WHICH: TIER 1 RISK-BASED CAPITAL RATIO (line item 17 divided by line item 42) (minimum of 7%) 74.6% TIER 2 RISK-BASED CAPITAL RATIO (line item 30 divided by line item 42) 45 2.8% TIER 3 RISK-BASED CAPITAL RATIO (line item 32 divided by line item 42) 46 0.0% ADDITIONAL CAPITAL SPECIFIED BY THE REGULATOR Total risk-weighted capital ratio (including additional capital specified) 77.4% OTHER CAPITAL MEASURES Gross Assets (total assets plus general and specific provisions) 2.527.849 TIER 1 LEVERAGE RATIO (line item 17 divided by line item 47) (minimum of 6%) 50 52.4% Note 1: All banking institutions shall tro ance with the provisions of BID-5 al charge for market risk Note 3: Limited to 250% of Tier 1 capital an pport market risk Note 4: The sum of eligible Tier 2 and Tier 3 capital shall not exceed 100% of eligible Tier 1 capital Note 5: Only complete the Operational Risk approach which is applicable to your institution

it and of quarter (38-34.35 to corporates bixfor a provisioning (36-87) Hello a and of quarter (4 1-42-43) CREDIT RISK Line no End DONE CREDIT RISK Line no. re at and of quarter (73-74-75) pairs before provisioning (76-77) 9 adjustments on general provisions Line no. PART B AGEING ANALYSE - COUNTER PARTES erdue 1to c2 morths Line no AGENG ANALYSIS - PRODUCT TYPES CREDIT RISK (Confidential and not avalatie for inspection by the public S TRBUTION OF LOANS & ADVANCES Non-performing bang thechile provisions Number of clans Line no . PART D MEMORANDUM SECTION Exesures secured by commercial mal sales Line no . As set Bought in or repossessed during preceding five years and unsold Private dweling cle and equipment Line no Value of exposure NS-806

1 of 2 BIR-5011 4001 Institution: Financial Year: NDUSTRY start Date: 2019 End Date: 2019/10/01 2019/12/31 CREDIT RISK (Confidential and not available for inspection by the public) PART A earest NS 000) Line no CLASSIFICATION CATEGORY ITEMS Pass or Doubtful Loss/ Total (A) CLAIMS ON SOVEREIGN OR CENTRAL BANKS ross exposure to sovereign or central banks atbeginning of quarter Movements during the quarter 6.570.131 Written off during the quarter 737.424 6.570.132 737.423 goss exposure to sovereign or central banks at end of quarter (1+2-3) eaizable value of security 7.307.555 307.555 o sovereign or central b arest suspended 7.307.555 7.307.555 Minimum provision in percentages, G=general. S=specific AUTHORIS ON PUBLIC SECTOR ENTITIES (PSEs), LOCAL AND REGIONAL oss exposure to public sector entities at beginning of quarter Movements during the quarter ss exposure to Public sector entities at end of quarter (9+10-1 1) aizable value of security 4,561.460 exposure to public sector entities before provisioning (12-13) interest suspended 4.561.460 rovision in percentages, G=general, S=specific AIMS ON BANKS posure to banks at beginning of quarter Movements during the quarter Written off during the quarter ass exposure to banks at end of quarter (17+18-19) a izable value of security Net exposure to banks before provisioning (20-21) Interest suspe Suspended 7.680.00 Provisions Minimum provision in percentages, Groeneral. S=specific V3 Institution: Financial Year: INDUSTRY Start Date End Date: 20 19/1 001 CREDIT RISK (Confidential and not available for inspection by the public) PART A Line no IF ICATION CATEGORY ITEMS Doubtful Total D) CLAIMS ON SECURITY FIRMS ss exposure to security firms at begin Movements during the quarter 1.677.073 Written off during the quarter 121,892 ross exposure to security firms at end of quarter (25+26-27) Realzable value of security 1.798.965 .798,965 Net exposure to security firms before provisioning (28-29) Interest suspended 1,798,965 um provision in percentages, Gugeneral, S= spe oif G=1% I CLAIMS ON CORPORATES exposure to corporates at beginning of quarter Movements during the quarter uring the quarter -209.627 was exposure to corporates at end of quarter (33+34-35) izable value of security 20.690,793 195 228 or porates before provisioning (36-37) 20,6 90,793 195 228 ion in perc es, G=general. S= specific 202,823 3,905 ELUDED IN THE RETAIL PORTFOLIO 2.235.838 some during the quarter 778.679 mourning the quaner more la por folio at end of quarter (4 1+42-43) 23.590.985 360-38 value of security 418.549 sure to retail portfolio before provisioning (44-45) 23.590.985 418,549 im provision in percentages, G=general. S= specific 235,964 9.407 Institution: Financial Year: NDUSTRY Start Date: End Date: CREDIT RISK Confidential and not available for inspection by the public) PART A Line no ITEMS Pass of ED BY RESIDENTIAL MORTGAGE PR e to residential mortgage properties at beginning of quans wements during the quarter Written off during the quarter 36.296 sure to residential mortgage properties at end of quarter (49+50-51) izable value of security 37,734,623 492.604 exposure to residential Interest suspended 37 734.623 492 ,604 Provisions Minimum provision in percentages, Gone ral. S= specific 377.346 9.852 28.196 217.135 (H) CLAIMS SECURED BY COMMERCIAL REAL ESTATES ss exposure to commercial real estates at beginning of quarter Movements during the quarter 11.803.115 163, 105 50,079 Written off during the quarter 89.654 24.665 (1-40,354) s exposure to commercial real estates atend of quarter (57+58-59) 11.640.011 60 425 133,311 12,840.581 posure to commercial real estates be fore provisioning (60-61) us pended 11.640.011 60,425 122 08 4.734 mum provision in percentages, G=general, S= specific 116,400 1209 7.920 G=1% 29444 DOTHER ASSETS tal other assets at beginning of quarts Movements during the quarter other assets at end of quarter (65+66-67) zable value of security 18,679,621 assets before provisioning (68-69) 18.679.621

QUARTERLY FIGURES FOR THE YEAR 2019 (NS '000) First Quarter Second Quarter ITEM DESCRIPTION 31-Jan 29-Feb 30-Ap 30-Jun 31-Jul 30-Sep 31-Oct 30-Nov 6.421 7.573 1,111, 192 40,276 8.627 983,848 7.778 8,795 1,178,424 52,265 11,152 16,708 98,181 44,702 6,524 6,518 6.174 6,689 104,694 102,435 52,614 105,010 102,201 103,691 93,724 104,434 98,66 99,302 100,350 93,721 98,20 93,546 97,736 86,449 1 11,118 116,097 140,434 107,080 1,543 1,231 1,760 1,149 1,330 1,319 1,783 3,261 1,744 5,494 1,315 3,197 3,120 539,529 2,839 11.614 9,789 8,220 6,854 15,693 $51,04 Interbank deposits -3,012 15, 109 13,369 13,877 5,029 1,590 13,799 4.117 13,211 12,642 4.208 109 -1,902 -7,661 2,083 1,360 697 95,666 6,625 82,808 94,437 5,935 95,846 6,762 6,533 7.578 6,795 105,052 6,365 103,296 6,605 104.726 6,534 6.856 4.753 182,763 3,917 202,466 198,998 6,757 188,682 177,182 4,744 45,631 41,444 19,932 454,450 20,533 540,346 19,521 54,526 56,789 47,051 41,169 10,476 43.295 53,786 27.891 105,612 50,913 68,520 46,164 20,422 56,756 15,794 37,756 9.500 General provisions 5,262 5,801 13,830 9,973 5,992 1,023 41,506 1,746 10,020 23,673 13,123 2,614 12,043 2,008 65,757 13,357 10.974 15,946 9,418 6,691 -8,962 270,758 293,799 313,742 329,653 301,849 305,419 315,862 295,391 14,163 13,241 15,368 9.412 15,922 18,604 15,952 4,702 6,058 15,680 16,157 11,893 13,791 18,219 10,028 10,700 10,390 11,993 12,581 12,130 43, 130 15,414 9.011 16,787 10,364 16,087 18,349 16,520 16.669 25,054 17,128 27.458 18,091 31,085 17,516 9,550 31,844 33,628 1.901 18,603 3,671 2,576 Staff costs 469,668 454,372 507,542 1,220 272,313 11,392 9,808 10,438 13,424 6,092 1,915 15,417 1,875 2,915 10,621 2,470 2,087 2,242 3,932 14,246 33,494 3,378 2,130 24,812 22,921 21,830 37.024 33,126 23,900 25,619 36,472 24.649 8,795 25,012 25,219 35,034 42,631 254,211 100,078 86,342 330,933 281, 108 92,792 389,295 300,222 Current 315,654 424,995 13,829 105,414 94,102 Deferred -55.055 12,611 21,161 34,501 -5,687 16,376 -8,001 -10,963 -7,721 Associate income/(expenditure - AC 110 675 -4.768 11,763 -2,578 23,938 13,469 52.484 RETAINED INCOME AT BEGINNING OF THE PERIOD 163,049 4,300,629 Number of personnel in employ at end of month 6,365 6,520 177 151 146 6,317 6,376 167 172 1.117 1,112 1,132 1.102 1, 122 1.139

Bank of Namibia NAMIBIAN BANKING INDUSTRY COMPUTATION OF CAPITAL BASE (RWCR 1) QUARTERLY FIGURES FOR THE YEAR 2019 (N$ '000) BASEL II Constituents of Capital Line no 31-Mar 30-Jun 30-Sep TIER 1 CAPITAL 31-Dec Paid-up ordinary shares Paid-up non-cumulative perpetual preference shares 584, 100 584,100 614, 100 Share premium 215,085 15,085 735,100 Retained profits/(accumulated losses) 59,524 215,085 59,524 215.085 General Reserves 304,925 59,524 287.273 Minority interests (consistent with the above capital constituents) 21,996 266,798 59.524 22,253 22,523 251,168 22,798 Sub-Total (Sum of Line items 1 to 7) Deduct Goodwill 1,185,630 1,168,235 1,178,031 1,283,675 Deduct Investments Deduct Investment in 10 DeductIncrease in 11 Deduct: 50% 12 Deduct: 50% of credit - Deduct: 50% of Deduct:50% of NET-Total TIER 1 CAPITAL (line item 8 less line items 9 to 16) 1,185,630 1,168,235 1,178,031 1,283,675 TIER 2 CAPITAL Hybrid (debt/equity) capital instruments Eligible subordinated term debt (limited to 50% of total Tier 1 capit Asset revaluation reserves General provisions (general loan loss reserves (limited to 1.25% o Current unaudited profits (if applicable)- [see Note 1] 7,700 17,583 6,468 34,552 6,923 58,741 Sub-total (sum of line items 18 to 22) 14,169 8,558 24,507 14.494 Deduct back-to-back placements of new tier 2 capital, arranged e 43, 110 73,235 Deduct: 50% of credit-enhancing interest -only strips, net of any in Deduct: 50% of investments in Deduct: 50% of investments in sec bsidiaries and in exposures for third pa Deduct:50% of investments in securitisation exposures for third pa Deduct:50% of retained securitisation exposures for originating ba NET-TOTAL TIER 2 CAPITAL (line item 23 less items 24 to 29) 30 14,169 24,507 43,110 73,235 TIER 3 CAPITAL Eligible short-term subordinated debt (see Note 2) TOTAL TIER 3 CAPITAL 31 Tier 1 available for Market risk 32 ELIGIBLE TIER 3 CAPITAL (See Note 3) 33 1,100,533 1,083,452 1,090,406 1,165,854 ELIBLE TIER 2 and TIER 3 CAPITAL (See Note 4) TOTAL QUALIFYING CAPITAL (sum of line items 17 and 35) 14,169 24,507 1,199,799 43,110 73,235 1,192,742 1,221,141 1,356,910 COMPUTATION OF RISK -WEIGHTED ASSETS 1. Credit Risk: Standardised Approach Total Risk-Weighted Amount for Credit Risk 2. Operational Risk: (see Note 5): 37 1.051,561 1.035,942 1,068,635 1.503,290 2 (a). Basic Indicator Approach : Calibrated risk-weighted amount 2 (b). The Standardised Approach: Calibrated risk-weighted amour 38 51,954 39 55,216 12, 152 58,75 52,655 Calibrated Risk-Weighted Amount for Operational Risk 3. Market Risk: Standardised Approach 164,106 120,029 124,396 175,245 183, 151 117,204 179,859 Calibrated Risk-Weighted Amount for Market Risk 1,375 1,907 3,351 1,900 AGGREGATE RISK-WEIGHTED ASSETS (sum of line items 37 42 N$'000 1,217,042 1,213,094 1,255,136 1,685,050 TOTAL RISK-WEIGHTED CAPITAL RATIO (line item 54 divided OF WHICH: 98.6% 38.3% 97.3% 80.5% TIER 1 RISK-BASED CAPITAL RATIO (line item 17 divided by TIER 2 RISK-BASED CAPITAL RATIO (line item 30 divided by 44 97.4% 45 96.3% 93.9% 1.2% 2.0% 76.2% TIER 3 RISK-BASED CAPITAL RATIO (line item 32 divided by 46 3.4% 0.0% 0.0% 4.3% 0.0% 0.0% ADDITIONAL CAPITAL SPECIFIED BY THE REGULATOR Total risk-weighted capital ratio (including additional capital specific 98.6% 98.3% 97.3% 80.5% OTHER CAPITAL ME Gross Assets (total assets plus general and specific provisions) 49 1,610,721 1,544,803 1,715,349 2,455,309 TIER 1 LEVERAGE RATIO (line item 17 divided by line item 47 50 73.6% 75.6% 68.7% 52.3% Note 1: All banking institutions shall treat and report unau Note 2: Only available to cover a portion of the dited profits in accordance with the provisions of BID-5 istitution's capital charge for JUNket risk Note 3: Limited to 250% of Tier 1 capital available to support JUNket risk Note 4: The sum of eligible Tier 2 and Tier 3 capital shall not exceed 100% of eligible Tier 1 capital Note 5: Only complete the Operational Risk approach which is applicable to your institution

Denominated in foreign currencies Short-Term Negotiable Securities 5,292,718 6,080,024 6,651,858 16,015,971 15,794,669 5,577,956 417,644 16,394,621 211,942 16,274,357 4,014,569 Negotiable Certificates of Deposits (NCDs) 16,609,133 16,725,126 Treasury Bills 13,861,317 213,872 15,655,669 13,847,864 215, 179 216,440 1,738,318 4,067,705 1,736,172 1,896,487 1,994,050 14,672,741 13,747,204 1,309 1,309 1,167 ,967,526 1,837,165 Total Loans and Advances 100,399,038 1,270 1,230 1,221 100,589,365 101,490,718 102,260,122 102,658,860 103,866,369 Loans to non-banks - repayable in foreign currencies 1 1,113,065 4,162 1 1,046,752 71,195 10,940,802 224,655 10,952,459 312,018 Residential mortgages 39,619,802 10,964,019 201,641 10,875,517 10,895,376 Commercial real estate mortgages 39, 191,654 12,714,328 12,734,611 40,240, 199 6,414,577 13, 106,941 39,854,711 39,983,649 6,443,833 3,121, 183 6,523,062 13,069,753 13, 120,316 fixed term loans Overdraft 15,650,311 15,460,077 6,656,207 15,670,158 15,684,337 6,801,493 7,052,944 15,853, 178 16, 150,500 16,744,372 Crdit card debtors 12,208,436 12,309,957 771,949 12,233,291 12,648,569 12,733,855 Acknowledgement of debts discounted 191,551 691,593 738,647 174,418 78,285 746,980 728,822 Loans granted under resale agreement 25,599 224,568 235, 195 Preference shares held to provide credit ,398,999 1,396,071 ,399,639 25,752 Other loans and advances 1,387,204 1,361,853 Less: Specific provisions 454,287 1,338, 109 Less: General provisions 839,386 1,054,055 892,878 498,961 1,346,814 913,020 938,085 406, 122 ,088,451 955,895 514,655 556,847 ,079,863 ,075,055 089,074 97,990,942 98,027,943 98,065,319 565,737 576,567 579,181 Trading Securities- after mark-to-market adjustments 3,515,052 3,429,322 99,676,438 3,597,722 101,223,978 Fixed Income 1,348,581 1,307,236 3,698,043 1,415,045 3,488,882 1,540,324 1,424,764 3,385,667 1,326,253 1,498,924 Other 533,436 537,386 1,633,035 591,282 559,944 459,770 448,731 542,777 Available for sale securities - after marking-to-market ,584,699 ,604,348 1,610,683 Fixed Income- (including NCDs held with banks) 2,140,017 ,597,775 276,559 2,675,033 2,704,743 Listed equities 740 297,539 Others- (including unlisted equities) 681 308,925 310,487 690 362 252 Held to maturity securities ,868,689 2,376,804 2,385,435 2,394,003 1,902,652 Fixed Income- (including NCDs held with banks) Others- (including unlisted equities) Less: Specific provisions on investments ventures Total trading and investment securities 32,794 5,682,269 34,260 5,788,186 34,827 35,581 6,218,431 6,125,991 6,494,533 Property, plant and equipment Premises of banking institution 2,202,461 2,264,951 2,238,196 Other fixed property 1,048,758 1,046,151 1,604 1,049,247 2,273,558 1,735 1,690 1,053,870 2,346,834 1,070,184 1,705 1,082,098 Computer equipments including peripherals 36,814 Other- including vehicles, fumiture and fittings 831,260 384,556 308,440 1,629 1,679 100,587 815,768 48,116 Other assets 383,198 815,793 Repossesed items , 346,801 381,915 2,350,997 53,537 ,420,369 52,434 ,969,622 ,302,595 2,714,179 2,790,569 Remittances in transit Receivables (net of provision) 712,550 50,144 ,008,660 251,925 544,851 55,399 63,467 Deferred taxation 259,570 2,275,465 1,106,318 499,484 Other 1,069,219 63,983 34 1,696 247.823 456,347 254,322 TOTAL ASSETS 850,410 266,084 253,165 138,031,491 138,864,915 779,187 140,507,675 142,778,945 821,964 141,377,867 141,496,898 142, 195,116 Nominal value of trading portfolio Nominal value of available for sale investment portfolio 2,774,302 2,947,529 3,189,515 3,034,393 2,861,588 3,130,311 Market value of held-to-maturity investment portfolio 9,633,284 9,416.574 9,149,134 9,693,331 9,364,968 (0 (2) (0 (1) (1)

Bank of Namibia NAMIBIAN BANKING INDUSTRY AGGREGATED BALANCE SHEET (BIR 101) QUARTERLY FIGURES FOR THE YEAR 2019 (N$ '000) Second Quarter Third Quarter Fourth Quarter ITEM DESCRIPTION 31-Ju 31-Aug 30-Sep 31-Oct 30-Nov 31-Dec LIABILITIES AND CAPITAL Bank Funding -Deposits & Borrowings Deposits 4,094,091 3,517,254 3,224,402 4,200,458 4,737,056 ,785,769 2,515,439 3,600,41 3,720,472 731,485 2,646,808 ,354,394 2,880,282 2,090,249 2,971,698 720, 128 748,774 Intragroup 317,883 37,705 29,029 315,349 309,542 80,665 26,492 07,342 24,038 Balances Due To Bank Of Namibia 212,274 230,363 25,307 132,183 20,968 04,991 190,042 188,573 Non-Bank Funding 386,709 204,994 Deposits 114, 177,806 105,538,376 114,962,762 106,324,726 115,777,257 107,285,707 117,190,760 Current accounts 25,937,681 26,067,148 108,435,703 27 ,244,963 109,776,065 108,650, 138 115,941,865 20,675,459 19,840,412 28,887,288 29,394,044 3,314,624 3,320,029 21,610,760 22,078,961 Fixed and notice deposits 21,630,328 3,426,390 21,195,718 3,449,896 Negotiable Certificates of Deposits 29,030,068 8,868,759 23,379,519 23,092,850 3,537,780 3,514,505 22,695,237 Foreign currency deposits 27,494,827 26,385,966 Borrowings 5,893,215 5,779,119 27,968,794 5,994,038 8,638,036 8,491,550 5, 115,861 8,755,056 5,064,906 8,717,313 8,298,622 4,845,435 Loans received under repurchase agreements Debt instruments issued 6,076,887 Foreign currency loans received 5,925,436 6,077,799 5,869,877 5,689,241 5,702,393 Other borrowings Total Funding-Related Liabilities 2,582,085 2,561,149 2,566,114 118,832,101 2,677,257 2,847,437 120,255,516 2,609,381 122,470,515 2,741,366 121,717,781 121,149,218 121,611,943 Non-Funding Related Liabilities Taxes payable 246,259 Deferred Tax Payable 167,078 73,608 303,743 4,340,730 358,423 432,975 649,973 502,595 647,395 56,898 Dividends payable Accrued expenses Remittances in transit .581,633 1,590,014 561,828 819,700 Derivativfcancial instruments 708,398 '80,158 472,978 1,597,890 590,497 698,990 919,467 21,621 560,362 1,076, 106 Other trading liabilities 699,151 65,417 158,354 37,308 552,951 Others Total Liabilities 122,322,057 246,023 122,888,540 127,435, 129 125,804,854 125,489,948 125,797,452 Capital and Reserves 15,709,434 Issued Share Capital 15,232,967 15,343,816 Ordinary share capital 823,046 16,006,951 823,046 16,397,664 853,046 853,046 853,046 974,046 Preference share capital 215,085 637,961 637,961 637,961 758,961 Share Premium ,322,078 215,085 Non-Distributable Reserves ,322,079 2,522,078 2.522,078 Distributable Reserves 160,287 12,404,024 165,193 12,666,059 162,135 11,909,564 169,493 12,228,397 159,624 General reserve 6,261,657 6,261,410 6,261,388 6,261,099 12,472,203 12,744,762 6, 142,367 5,648,176 5,745,457 6,261,137 Minority Interest 6,211,066 6,577.051 6,167,711 TOTAL LIABILITIES AND CAPITAL 138,031,491 138,864,916 140,507,677 142,778,945 141,377,868 141,496,898 142,195, 117 Interbank deposits denominated in foreign currency 325,919 326,950 317,001 263,921 20,000 17,975 7.681 9, 198 Non-bank group deposits denominated in foreign currency Non-bank group borrowings denominated in foreign currency ASSETS Cash and Balances with the Banks 13,793,048 14,823,433 15,600,984 14,942,946 1,045,618 1,235,840 13,644,223 13,683,533 Other currency holdings, gold coins and bullion 75,012 1,075, 162 1.243,454 1,248, 167 Balances with Bank of Namibia 4,289,860 3,980,034 2,974,936 171, 107 Statutory reserve account 1.215,291 1,229,228 1202,018 2,898,662 2,699,837 Clearing account 1,242,334 1,235,647 Other 2,219,023 1,741,523 Balances with Banks 1,948,318 531,783 (64,379) ,350,914 Denominated in legal tender in Namibia 9,532,546 1,100,222 1,282,919 3,080,181 11,271,811 111,689 9,648,788 1,438,553 9,984,489 4.651,223 4,406,532 9,618,643

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it and of quarter (38-34. re at and of quarter (73-74-75) pairs before provisioning (76-77) 9 adjustments on general provisions Line no.
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