Absa Botswana, the listed bank is going ahead with its multi-pronged strategy of diversifying revenue base, amid tight competition in the multi-billion Pula that is even made worse by increasing number of players in the financial services sector. The lenders’ Managing Director, Keabetswe Pheko Moshagane stressed the above plans when delivering interim results recently. “We remain resolute in our ambition and focus on revenue diversification and growth. We believe this is achievable through expansion of our products and service offerings as well as exploring new business lines across all our segments,” said Moshagane who climbed to the pole position of the bank in April 2019. Absa Botswana, which is a unit of Pan African banking group Absa, closed a structured deposit with an institutional client as part of its Risk Management Products (RMP) efforts that offer bespoke solutions, while diversifying revenue base. The deal was done within the Corporate and Investment Banking division. The bank, which ranks among the biggest banks in the country has also launched Islamic Banking product, which has underscored commitment to promote inclusivity and cater a diverse clientele. “We are encouraged by the uptake of the offering and note that there is significant demand for the Bank to be able to respond to niche markets and cater for all sub-segments within the economy. This offering has also provided us with a novel source of deposits, and we have seen commendable progress in this line, with an anticipation of growth in the mid to long term,” she told investors and stakeholders. "In line with our ambition to diversify our revenue, we have been deliberate about sectors and segments that we are growing and defending. To that effect, we have grown in various sector including agriculture, commercial and residential property, transport as well as public non-financial corporation’ The bank said it will continue to align its strategic diversification efforts with that of government. Meanwhile, the bank strengthened lending proposition through the enhancement of our vehicle and asset financing suite, by availing a residual financing option for clients. Furthermore, post the launch of Motshelo Savings Account last year, the bank has since followed this Account with Motshelo Loan. “A formidable area of success during this period, with an impact of availing financial solutions to over 40,000 people was our Workplace banking proposition, where we partnered with two new entities to offer transactional, savings and lending proposition to their employees,” announced Moshagane. To keep pace with peers within digital banking, Absa has introduced a first of its kind payments solution, Mobi Tap. The solution allows merchants, particularly Small, Medium and Micro Enterprises (SMMEs) to use their mobile phones in place of traditional Point-of-Sale (POS) devices to process contactless card transactions. Despite a tough trading environment, Absa achieved growth in profit before tax (PBT) of 13% during the 6-months period under review. PBT closed at P 447.5 million. This was due to a maintained positive momentum of material lines of our statement of comprehensive income. Customer loans and advances grew by 5% year on year driven by growth opportunities in our Retail and Business Banking (RBB) and Corporate and Investment Banking (CIB) segments. The P564 million increase in deposit was because of our active client acquisition and penetration strategies which enabled us to bank the needs of our customers and grow our deposit base. “We are particularly pleased with our sustained double-digit return on equity, sitting at 26%, a 3% improvement from the prior period. This performance reflects the outcome of the deliberate strategic choices we continue to make as an organization,” said Financial Director, Cynthia Morapedi. Going forward, the bank said it will explore opportunities geared towards diversifying revenue streams and improve operational efficiencies. “Our people are the driving force behind our performance. Culture transformation is therefore a strategic imperative. We will continue to invest in training and development programs aimed at equipping our employees with skills and mindset that enables them to finding solutions for our customers' future needs,” stated the bank. The board, led by Neo Moroka has approved an interim dividend of P123 million, translating to 14.43 thebe per share. Subject to regulatory approval, it will be payable on 18 October 2023 to those shareholders registered at the close of business on 06 October 2023, with an ex-dividend date of 04 October 2023.