BancABC Botswana accumulated P122.7 million from fees last year. Known as Non-Interest Revenue (NIR) in banking terms, the fees include deposit and transaction fees, insufficient
funds (NSF) fees, annual fees, monthly account service charges, inactivity fees, check and deposit slip fees, and so on.
According to the bank’s Chairperson Lorato Mosetlhanyane and Managing Director Kgotso Bannalotlhe, the P122.7 was marginally lower than 2019 due to significant decline in customer transactional activity linked income and discounts granted as well as reduction in lending.
The bank generated P422 million from Net Interest Income which is a 2 percent improvement on the P411 million from 2019. “Despite the economic and global challenges, income lines showed relative resilience and growth in the case of Net Interest Income (NII), although this was insufficient to offset the challenges of increases in expected credit losses,” commented Mosetlhanyane and Bannalotlhe.
Despite a 17 percent (P25.7 million) decline in profit before tax from a restated position of P150.6 million in 2019 to P124.9 million in 2020, the two said BancABC remains in a strong solvency position. They said it is so because unimpaired capital and risk weighted assets stood at P1.4 billion and P7 billion respectively resulting in a capital adequacy ratio of 21 percent.