FNB year profits hit P1.4 billion
First National Bank Botswana has posted-double digits jump on profit before tax for full year powered by among strong advances, despite a runaway inflation which has squeezed consumers’ disposable income, affecting their ability to access credit. This week, top two executives of the bank, Chief Executive Officer, Steven Bogatsu and Chief Financial Officer, Dr Mbako Mbo-who joined the bank just over six months ago, paraded the colourful results before stakeholders and shareholders.
According to company financials, profit before tax increased by 18 percent to close at P1.4 billion. The bank’s balance sheet grew 9% year-on- year, driven mainly by growth in advances to customers across all segments. Corporate advances ballooned by 11% up, while commercial and retail advances increase by 8% and 7% respectively. Speaking during the event, Bogatsu stated that, growth in corporate advances was driven by working capital support to State Owned Enterprises (SOE) and Fast Moving Consumer Goods (FMCG) sectors, as well as finance deals in the financial services sector. “Key deals in the tourism, fuel and agriculture sectors supported growth in the commercial advances book, while personal loans in the retail book grew on the back of extended tenures and ticket size limits to individuals within Group Schemes,” noted the bank, which is listed on Botswana Stock Exchange. Deposits from customers grew by 9 percent, almost same as advances.
“The growth in the deposit base was led by an overall growth in retail and commercial current accounts. Retail deposits grew 11% year-on-year mainly reflective of better yields offered by the bank to retail customers on personal savings accounts,” the bank stated. The commercial segment deposit base also increased by 11%, mostly on current and call accounts, reflective of both a sustained improvement on the trading environment and the bank’s client retention strategy. On the other hand, corporate and Treasury deposits increased by 6% as the bank slowed down on term deposits amid heightened market cost of funds. Meanwhile, Bogatsu told attendants they will continue to push hard financial inclusion, which among others will come in the form of strategic partnerships in service delivery.
“The bank continues to broaden its financial inclusion with further expansion of its Agency Banking (Cash Plus) footprint, thereby bringing services to more remote locations and enhancing customer convenience,” said the bank. FNBB, which is a subsidiary of FNB South Africa will continue to deploy its financial resources appropriately and prudently, maintaining conservative capital and provisioning levels. Investments in operational efficiencies will maintain focus on increasing delivery of digitalisation and Artificial Intelligence (AI), specifically aimed at further enhancing customer experience through innovations around products and services. “A forward-thinking approach to technology and innovation has been, and remains a top priority for FNBB, including the attendant need to continually enhance measures to guard against cybercrime, “said the bank, which is better known for cutting banking technologies.
The lender, which has just over 20 branches around the country, has vowed to make visible strides in supporting green and sustainable economic growth. “Our policies have been reviewed to ensure this, and the texture of our balance sheet will begin to reflect our resolve to contribute to safer environments’ As a matter of fact, the bank has announced it will fund a solar power station.The board of directors of the bank, led by Balisi Bonyongo has already approved funding of the station in Selebi Phikwe. “The approval was done about a month ago,” said Bogatsu without giving further details. The FNB Botswana top executive, told Botswana Guardian more details on the deal will be shared in due course. The bank has also managed to declare a dividend of 20 thebe per share. The dividend will be paid on or about 11 October 2023 to shareholders registered at the close of business on 29 September 2023.