The directors have pleasure in submitting their report together with the annual financial statements of the bank for the 15 months ended 31 December 1999.

The Commercial Bank of Namibia Limited is a registered bank that provides a full range of banking services. The bank's head office is in Windhoek and its operations are confined to Namibia.

To bring the bank's reporting period in line with those of its major shareholders, the financial year end was changed from 30 September to 31 December.

The net income after taxation for the 15 months amounted to N$44,3 million compared to N$20,7 million for the previous year covering a 12-month period. Total assets of the bank rose by 9,7% from N$1 560,6 million to N$1 712,2 million.

During the year under review, the bank's authorised share capital remained unchanged at N$20,0 million, consisting of N$17,5 million ordinary shares and N$2,5 million convertible preference shares. The issued share capital remained at N$16,0 million, consisting of 64 093 969 ordinary shares with a nominal value of 25 cents each.

The directors recommend the payment of a dividend of 15,0 cents per share, covering a 15-month period (1998: 7,0 cents per share, covering a 12-month period). The total dividend amounts to N$9,614 million, which equates to 60% on the issued share capital of N$16,0 million.

 

The board will request shareholders' approval for its decision to transfer an amount of N$34,611 million to general reserves for the continued strengthening of the bank's reserves. A nominal amount of N$100 000 will be carried forward to the following year as retained income.

The accounting treatment of loans and advances disclosed in the annual financial statements complies with the requirements of BID-2 of the Bank of Namibia. BID-2 (Determinations on the Classification of Loans and the Suspension of Interest on Non-Performing Loans and the Provisions for Bad and Doubtful Debts) has been issued pursuant to Section 71(3) of the Banking Institutions Act, 1998.

At the bank's annual general meeting held on 31 March 1999, Messrs J A Brückner, R H Peters, F R M Thireau and Dr F Tjingaete, who retired by rotation in accordance with the provisions of the bank's articles of association, made themselves available for re-election and were duly elected.

 

Mr P F Koep resigned from the board on 31 December 1998, while Dr H-H Matthias resigned as director and acting chairman on 31 March 1999.

 

On 1 April 1999, the board approved the appointment of Mr G Z Steffens as director and subsequently elected him chairman of the bank.

 

The board conveys its appreciation to the resigning directors for their valuable contributions during their terms of office.

 

The names of the directors and the company secretary as well as the company's registered address have been set out on page 6 of this report.

We extend our sincere appreciation to our employees and esteemed customers for their loyalty and continued support.

 

Our appreciation is extended to the Ministry of Finance, the Bank of Namibia, the local authorities and our attorneys and auditors for their assistance and co-operation.

This report and the annual financial statements set out on pages 24 to 43 were approved by the board of directors on 28 March 2000 and signed on its behalf by: