For a year that it belied the economic uncertainty engulfing the country, Absa Botswana just reported revenue growth of 9.4%, enhancing its affluent banking experience with Botswana’s first-to-market smart metal Visa card, and onboarding more than 300 customers in the informal sector
GAZETTE REPORTER
Despite a challenging socio-economic climate, Absa Bank Botswana has reinforced the resilience of its retail banking segment and delivered robust financial performance of 9.4 percent year-on-year revenue growth for the year ended 31 December 2024.
The bank’s Managing Director, Keabetswe Pheko-Moshagane, has credited this success to the consistent delivery of innovative and relevant solutions.
Absa Botswana’s 9.4 percent year-on-year revenue growth was driven by an 8.2 percent increase in interest income and a 12 percent rise in non-interest income.
Primary financial partner
Customer deposits surged by 24 percent while loans and advances grew by 5 percent. Customer numbers saw a 4 percent year-on-year increase, reflecting the bank’s ambition to be the primary financial partner for its clients.
“Despite a shifting economic landscape and sector-specific challenges, we remained focused on executing our strategy and delivering value to our customers and communities,” Pheko-Moshagane said at the report.
“Our continued investment in digital transformation, customer experience, and financial inclusion has positioned us for long-term, sustainable success.”
Unsecured loan limit of P750K
Absa Bank Botswana deepened its commitment to financial inclusion by expanding banking access through the Absa Mobi Tap and ReMmogo Account propositions, onboarding over 300 customers in the informal sector.
The bank also introduced Botswana’s first-to-market smart metal card under the Visa Signature brand, enhancing its affluent banking experience.
To further support customers’ financial needs, Absa increased its maximum unsecured loan limit to P750,000 and extended the maximum loan term to 96 months.
30 new ATMs
The bank’s infrastructure investments included the launch of a Digital Self-Service Centre in Gaborone’s Central Business District, a 4-in-1 branch in Francistown, and the installation of 30 new ATMs.
Additionally, agency banking partnerships grew by 9 percent as part of efforts to unlock further growth opportunities. The bank demonstrated strong financial results in 2024, with profit before tax (PBT) exceeding P1 billion.
PBT rose by 27 percent, from P831 million in 2023 to P1.058 billion in 2024, supported by improved net interest income, increased fee and commission income, and disciplined cost management.
“We are focused on strategy”
Total comprehensive income increased from P644.5 million in 2023 to P836.2 million in 2024, reflecting stable profitability and solid operational execution.
According to the MD, the year tested Absa’s ability but reaffirmed the bank’s purpose. “We had been disciplined in the execution of services guided by our strategic pillars,” she said. “We also retained the trust and confidence that our customers have in us as a business. We are focused on strategy.”
While acknowledging the challenges that lie ahead, Absa Bank Botswana remains confident in its ability to navigate the evolving economic landscape.
Challenging
Absa Chairman Cosmas Moapare, speaking at the financial results announcement, emphasised the importance of collaboration and strategic resilience. “While recovery is anticipated in 2025, we are aware that yet again, the year will be challenging,” Moapare said.
“We derive comfort from the knowledge that through collaboration with key stakeholders such as our government, regulators and customers, we will all work together to stabilise the economy and propel Botswana towards sustainable economic growth.”
Moapare assured stakeholders of the bank’s readiness to play a leading role in supporting various sectors of the economy.