Money and banking statistics

Annual changes Claims on resident private sector Mortgage loans (ex-non residents) Other loans and advances Instalment credit
Source: Bank of Namibia, SSS Research

1 August 2012

Jun-12 12.27% 13.60% 5.21% 18.01%

May-12 12.80% 13.98% 6.26% 18.93%

According to the Bank of Namibias money and banking statistics, N$499m (1.1% m-o-m increase) in credit was extended to the private sector in June 2012, with total credit outstanding at N$47.8bn. Annual growth in private sector credit extension (PSCE) slowed to 12.3% from 12.9% in May and 13.6% in April. Of the N$499m in debt issued in June, N$315m was extended to the corporate sector, N$219m to individuals, while the non-resident private sector contracted N$35m during the month and as a result individuals portion of total credit outstanding declined to 62.9%. From a categorical perspective mortgage advances and overdrafts were the most prominent during the month, increasing N$273 and N$187m, respectively. On the other hand other loans and advances declined N$122m in June. Over the past twelve months R5.2bn in credit was extended to the Namibian private sector, of which N$3.6bn was to individuals and a lesser N$1.6bn to the corporate sector. Mortgage advances were the dominant category from a 12 month perspective with N$3.0bn in net mortgage advances being issued. The second biggest category was instalment sales at N$1.1bn with other loans and advances slower at N$619m, while overdrafts actually reflected a N$1m repayment. Annual growth in corporate credit slowed to 10.3% in June from 12.2% in May and 13.6% in April. On the other hand growth in credit extended to individuals remained fairly stable at the 13.4% level. All categories, except for the instalment category, showed an ease in the annual growth rate for the third consecutive month, with mortgage advances dipping to 13.6% from 14.0% and 15.5%, other loans and advances easing to 12.4% from 13.9% and 18.3% and overdrafts being unchanged compared to 12 months ago. Annual growth in instalment sales remained at the 18.0% level. Figure 1: Corporate versus Individuals growth
20% 15% 10% 10% 5% 0% -5% 2007 2009 Corporate
Source: Bank of Namibia

Figure 2: Credit categories

40% 30% 20%

Figure 3: Split in total credit outstanding

N$ millions 2 497 7 357 Mortgage advances Other loans & advances Overdrafts 6 883 25 128 Installment credit 5 599 Other claims

0% -10% -20% 2011 Individuals 2007 2009 PSCE Instalment credit 2011 Mortgage advances Overdraft

Namibias foreign reserves increased by N$485m to N$14.4bn and are 31.2% higher y-o-y, with the increase attributed to government inflows. The governments cash balance remained fairly stable during the month, increasing N$57.9m to N$6.7bn, 37.5% higher than a year ago. Figure 4: Foreign Reserves (N$'m)
16 000.00

11 000.00

6 000.00

1 000.00

-4 000.00 Mar-10 -9 000.00 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12

-14 000.00

Foreign Reserves
Source: Bank of Namibia, SSS Research

Banks' net foreign liabilities

Negative Banks net foreign liabilities = Net foreign assets

The following TB tenders were held during July 2012: Days Offered (N$m) 200 250 200 200 Tendered (N$m) 396.87 426.88 448 470.85 Allotted (N$m) 200 250 200 200 NACM (%)

91 182 273 364

Source: Bank of Namibia, SSS Research

5.85 5.92 5.73 5.84

Results of primary bond auctions held by BoN during July were as depicted below: Bonds Alotted (N$m) 29.85 26.04 W.A. YTM (%) Benchmark (%) 7.24 7.72 Margin (bps)

GC27 GC30
Source: Bank of Namibia, SSS Research

8.53 9.10

129 138

The following secondary bond trades were reported to the NSX during July 2012. Volume (N$m) YTM (%) Benchmark (%) Margin (bps)

GC12 GC24
Source: Bank of Namibia, SSS Research

28.6 100

5.85 8.72 7.84 87

Total domestic debt for Namibia increased slightly to N$17.53bn in June (from N$17.38 in May), however the annual growth rate decelerated significantly from 45.6% in May to 38.9% in June with the high base starting to take effect. Of the total debt, 46% was longer than 12 months while 54% was shorter term debt. The ratio of domestic government debt to GDP increased slightly in June to 17.7% from 17.6% before. Figure 5: Government debt split (N$'bn)
10 9 8 7 6 5 4 3 2 1 0
Dec-09 Feb-10 Oct-10 Dec-10 Feb-11 Oct-11 Dec-11 Aug-10 Aug-11 Feb-12 Apr-10 Jun-10 Apr-11 Jun-11 Apr-12 Jun-12

Shorter than 12 months

Source: Bank of Namibia, SSS Research

Longer than 12 months

Company Details
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Managing Director Research

Andrew Jansen Rom Mostert Rudolf Kuschke

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Dealing

Kobus Thorburn Lyndon Sauls

Money Market

Bruce Hansen Shinine Jansen Amanda Meyer Fazley Stramiss

Portfolio Administrator Corporate Finance Finance

Marlene Mertens Muller Kotze Alexia Tjiroze

Disclaimer
The report is provided by Simonis Storm Securities (Pty) Limited (SSS) solely for the recipient's information. The user assumes the entire risk of any use made of this information. Its contents are based on information obtained from sources believed to be reliable. SSS makes no representation and accepts no responsibility or liability as to its completeness or accuracy of any information, facts and/or opinions contained in the report.