FNBB profits soar
Despite heightened competition on the banking industry turf, First National Bank Botswana's performance continues.
According to the bank’s latest advisory to shareholders on performance for the year ended 30 June 2022, profits are expected to be stretched above 30 percent on the P901 million recorded last year.
“The board wishes to inform shareholders that the company’s overall profit before tax for the twelve-month period ended 30 June 2022 will be higher than that reported in the previous corresponding period by between 30 percent and 35 percent, which in number terms is an increase of between P270 million and P315 million,” said FNBB which is led by Steven Bogatsu.
With full details of FNBB financial results, expected by mid-September, the bank is already poised to maintain its market position, with a 29 percent market share, as indicated by the 2020 survey. FNBB is among the top four banks that have remained market leaders for the past nine years, with small bank fighting to break the 80 percent market share dominated by the big four. Meanwhile, researchers at Econsult have indicated that the domestic banking sector continues to demonstrate considerable resilience, although some cracks are beginning to show, as economic uncertainties prevail.
“Annual bank credit growth reached 6.6 percent in April 2022, up from 4.7 percent in January 2022. “As a reflection of improving economic activity, credit to firms rose to 8.4 percent in the year to April 2022, its highest level since January 2019.
This increase was partially offset by a decline in the growth rate of credit to households, which fell to 5.6 percent, its lowest level since mid-2017; this could be indicative of growing uncertainties over consumer incomes as inflation continues to rise and adjustments that encourage saving are made to monetary policy.”
The analysts believe that the local economy continues to experience strong post COVID-19 economic recovery with the momentum realised throughout 2021 being carried forward into the early parts of 2022.