“I feel fortunate to be able to share a report that reflects not only the momentum of our own growth but also reports fresh approaches to finance and growth,” Sven Thieme, the chairman of DBN, said.
Total loan facilities extended during the financial year amounted to N$84.65 million compared to the N$110.74 million extended in 2005.
Of the N$84.65 million loan facilities, a total of N$33.92 million was extended to SMEs through Bank Windhoek.
It was also learned during 2006 that most of the market segments targeted by the bank lacked experience in raising capital and managing start-up entities. Due to this, the bank's operation team has started to nurture projects in an effort to mitigate risks during the period of funding.
“From a financial standpoint DBN performed well. Earnings on investments and return on projects were well within the acceptable range for financial institutions,” said Thieme.
A closer look at loan participants shows that a larger number were SME lenders, about seven, compared to only three infrastructure funding to the likes of Cell One, National Housing Enterprise and the Oshakati Town Council housing project.
This, said CEO David Nuyoma, is only the beginning of business. “We are in our second year of operations, we have to bite what we can chew,” he said.
Nuyoma pointed at infrastructure development projects funded in the past two years as a good progress for the bank. He however emphasised that although DBN will play the role of funding of infrastructure development, this was “a big responsibility to which all stakeholders can contribute”.