![[Namibia] FNB concludes deal to acquire Pointbreak and Ebank](FNB Namibia.jpg)
[Namibia] FNB concludes deal to acquire Pointbreak and Ebank
FNB Namibia has successfully concluded a deal to acquire 100% of Pointbreak and Ebank according to Simonis Storm Securities.
“The bank also successfully concluded a deal to acquire 100% of Pointbreak and EBank, however we are not able to incorporate this transaction into our model as the pertinent details are not yet made available to the public,” Simonis said.
The firm said following a meeting with FNB, it was anticipating a muted growth rate in advances of 8,6% going into the first half of 2017.
Simonis said the bank will face challenges, which includes a slowing economy, a probable slowdown in vehicle finance due to the new amended Credit Agreements Act and the construction sector being in a recession. Simonis estimates real GDP at 2.5 per cent for 2016 and 2.8 per cent for 2017.
The firm said it expects the slowdown in the construction sector to be offset by decreased exposure to the building and property development sector from 12.3 per cent in 2015 to 8.7 per cent in 2016.
“We expect at least two interest rate hikes (50 basis points in total) in 2017, which will feed well into the bank's top line and into positive endowment effects.” Simonis said it estimates inflation of 6.8 per cent going into 2017.
