Combined loan impairments at Namibia’s four largest commercial banks surged from about N$12.3 million in June 2015 to a pandemic peak of roughly N$101 million in December 2020 before gradually retreating, according to a new banking sector report by Cirrus Capital.
The report tracks impairments across First National Bank of Namibia, Bank Windhoek, Nedbank Namibia, and Standard Bank Namibia, dividing the past decade into three distinct phases.
Between 2015 and 2018, combined impairments stayed relatively contained, ranging from about N$11.2 million to N$20.8 million, supported by steady if slowing economic growth. From 2019, the onset of the Covid-19 pandemic disrupted economic activity and forced lenders to recognise sharply higher expected credit losses, pushing combined impairments from N$34.9 million in June 2019 to N$101 million by December 2020.
Recovery began in 2021 as conditions improved, and by 2022 combined impairments had fallen to about N$43.6 million. Since then, figures have edged upward again, reaching N$60.1 million by June 2025 before easing to N$51.8 million by year end.
The four banks showed divergent trajectories. First National Bank of Namibia recorded the largest increase, with impairments rising 777% between June 2015 and December 2025. Bank Windhoek posted a 252% rise, while Nedbank Namibia increased 167%. Standard Bank Namibia stood apart as the only major lender to end the period lower than it started, registering a 35% decline.
Cirrus Capital identified First National Bank of Namibia as the only institution currently experiencing a “second cycle” of rising impairments, with levels rebounding 547% from a December 2022 low. The remaining three banks stay below their pandemic era peaks, with Nedbank Namibia’s impairments largely returning to pre-pandemic levels.
The report concluded that the sector is now operating with impairment levels that “remain above pre-pandemic levels but still contained.”
