- Tsaone Segaetsho
Absa Bank Botswana has announced its financial results for 2024, revealing a 27% increase in profit before tax, driven by an 8% rise in net interest income.
Managing Director Keabetswe Pheko-Moshagane stated that the bank had delivered strong financial results for 2024, despite a challenging economic landscape.
Absa also recorded a 12% increase in fee and commission income. Operating expenses declined by 6%, while Return on Equity (ROE) stood at 26%.
According to the financial results, total assets reached P25 billion, with loans increasing by 4%. Capital and liquidity positions remain robust, exceeding regulatory requirements.
“Despite a shifting economic landscape and sector-specific challenges, we remained focused on executing our strategy and delivering value to our customers and communities. Our continued investment in digital transformation, customer experience, and financial inclusion has positioned us for long-term, sustainable success,” said Pheko-Moshagane.
She noted that the bank is demonstrating resilience, adaptability, and a strong commitment to sustainable growth despite economic headwinds. The results underscore the bank’s strategic progress in expanding revenue streams, deepening client relationships, and driving innovation.
Absa’s Retail and Business Banking (RBB) segment also showed growth. Retail revenue rose by 9.4%, customer deposits increased by 24%, and business banking loans advanced by 5%. According to the published financials, the bank onboarded over 300 informal sector customers through Absa Mobi Tap and Remmogo, while expanding SME funding with P280 million—supporting the creation of 755 new jobs.
In the Corporate and Investment Banking (CIB) division, client satisfaction improved by 13%, and Corporate Banking income grew by 11%.
“The bank successfully executed landmark transactions in Healthcare, Telecommunication, and Education while supporting emerging sectors like manufacturing and regional trade,” said the results booklet released on Thursday.
In terms of digital expansion and customer experience, the bank enhanced digital accessibility through new ATMs, a Digital Self-Service Centre, and a 4-in-1 branch in Francistown, contributing to improved customer satisfaction scores.
Sustainability & Community Impact:
The bank raised P32.6 million through a tap issuance on its Sustainable Senior Unsecured Note, bringing the total to P80 million. Absa Bank Botswana was also recognised at the 2024 Integrated Reporting Awards for its commitment to transparent and accountable corporate governance, according to the financials.
Looking ahead, the bank anticipates sustained revenue growth momentum and a cost-to-income ratio in the lower 50s, supported by ongoing cost efficiencies.
“We are embedding ESG principles across our operations, investing in Botswana’s economic diversification, and positioning ourselves as a leader in sustainable finance. As we navigate the evolving landscape, we remain committed to empowering our customers and communities—because at Absa, Your Story Matters,” said Pheko-Moshagane.
