- Tsaone Segeatsho
First National Bank Botswana (FNBB) has recorded a profit of P879 million, representing a 28 percent rise in profit before tax for the six-month period ending December 31st last year.
During the results presentation, FNBB’s chief operating officer, Dr Mbako Mbo, stated that during the period under review, the bank made a significant profit due to growth in gross customers. This, according to him, has seen the bank’s total balance sheet grow by 15 percent year-on-year.
According to the bank’s recent financial results, Total Income grew by 22 percent year-on-year, outpacing the 16 percent growth in expenses over the same period. FNBB reports that at the top-line level, Gross Interest Income grew by 26 percent, driven by the residual impact of rate hikes in the latter part of the last financial year, as well as an overall 12 percent growth in customer advances.
An additional 24 percent growth in funds deployed into investment securities also contributed to the overall growth in gross interest income. This was on the back of increased deposit inflows on current, call, and savings accounts according to the bank’s recent results.
Additionally, the retail segment grew by 7 percent, driven by solid growth in the personal lending portfolio (secured and non-secured) following Client Value Proposition enhancements on scheme lending and a refresh of the WesBank product offering. Growth recording continued as the Commercial Segment concluded key deals which saw a 14 percent growth in gross advances, with sectors like Agriculture, Retail Sector, and Tourism, among others, benefiting from this growth.
Another significant growth, an increase of 24 percent year-on-year, was recorded in the Corporate Segment Customer Advances. This was followed by a 14 percent growth during the same period of the prior financial year and was attributed to financial solutions extended to the financial services sector (including leverage finance), property sector, and certain key State-owned Enterprises.
Mbo stated that the bank had registered broad-based profit during the period under review, with commercial lending, retail, and online transactions among the key sectors driving growth. He also mentioned that the bank’s total balance sheet grew by 15 percent annually as a result of growth in gross customer advances across its critical operating segments.
Commenting on the recent results, FNBB Chief Executive Officer, Steven Bogatsu, said; “The bank is working towards concluding their Vision 2025 strategy which is centred around digital transformation. This is anchored around the five pillars of solution-oriented people, operational efficiencies, shared value and sustainability, being customer-centred and value protection.”
