- Records yoy profit surge of 258% to P23.3m, up from P6.5m
- BSB Insurance Agency alone contributed P11.3m
- Net Interest Income up 5% to P173m from P164m in 2023
TLOTLO KEBINAKGABO
Botswana Savings Bank (BSB) has reported an impressive financial performance for the year ending 31 March 2024, marking a pivotal year of growth and transformation.
“This financial year stands as a testament to the bank’s strategic vision and the dedication of our team,” the Managing Director, Nixon Marumoloa, wrote in the bank’s Abridged Audited Consolidated Financial Statements.
The year marks the second phase of BSB’s three-year “Lesedi Strategy” (2022-2025), a comprehensive plan to modernise and expand BSB’s offerings, positioning it as a competitive and technologically advanced institution.
Commercially viable entity
“Our milestones reflect a successful trajectory in transforming BSB into a commercially viable entity,”
Marumoloa said.
The financial year saw profit surge by 258 percent to P23.3 million, up from P6.5 million the previous year. Much of this growth is attributed to the bank’s new subsidiary, BSB Insurance Agency, which alone contributed P11.3 million, and the performance of an enhanced loan book.
“The Group’s focus on expanding its portfolio and improving operational efficiency has yielded tangible results,” Marumoloa added.
Revised sales strategy
BSB’s Net Interest Income rose by 5 percent, from P164 million in 2023 to P173 million in 2024. This increase, Marumoloa noted, was driven by a revised sales strategy that included expanding the bank’s direct sales agency network and adjusting maximum loan amounts to stimulate demand.
BSB’s Net Advances grew by 17 percent year-on-year, reaching P2.7 billion, up from P2.3 billion, underscoring the bank’s ability to effectively grow its asset base.
BSB also reported a modest 4 percent increase in customer deposits, which rose to P2.5 billion. “This growth reflects the trust and confidence our customers continue to place in the bank,” Marumoloa noted.
Liquidity position robust
Further, the Group’s Capital Adequacy Ratio (CAR) stood at 21 percent, well above the regulatory requirement of 12.5 percent. The boost was supported by a P150 million Tier II Bond issued in December 2023, a move Marumoloa said would “reinforce BSB’s capital structure and position it for future growth.”
The bank’s liquidity position remains robust, with the Liquidity Asset Ratio at 20 percent, comfortably exceeding the 10 percent regulatory threshold. “This underscores our solid financial foundation,” he said.
Return on Equity (ROE) also saw an uptick, rising to 9 percent, indicating improved profitability and efficient use of capital.
Growth trajectory
Looking forward, Marumoloa said the coming year is expected to further consolidate BSB’s growth trajectory. “The recovery in our loan book has been encouraging, and we expect to meet or exceed our financial targets in 2024-2025,” he said.
BSB’s ongoing digital transformation initiatives are also anticipated to deliver efficiencies, cost reductions, and new revenue streams. “Our digital initiatives are laying the groundwork for a more streamlined and competitive operation,” said the MD.
Meanwhile, BSB is actively engaging with the government in discussions about the bank’s potential privatisation. “While these discussions are progressing, our immediate focus remains on commercialising the bank and preparing it for future market opportunities,” Marumoloa said.
Transformative changes
With an eye on sustained growth, BSB is optimistic that the transformative changes taking place will secure its role as a cornerstone of Botswana’s financial landscape.
“The momentum we’ve built is a strong foundation for the future,” Marumoloa concluded, confident that BSB is well-equipped to navigate the evolving demands of the financial sector.