- CEO paid P5.5m in 2018
- FNBB is the most profitable bank
A staggering sum of P9.5 million was paid to directors of the board of First National Bank Botswana (FNBB) for the year ending 30 June 2019, the bank’s annual report shows.
Leading the pack is Steven Bogatsu, the bank’s CEO whose total remuneration package totalled P5.5 million. At that level, Bogatsu must have been paid P458 333 in salary per month. FNBB’s independent non-executive director Michael Ward walked away with P800 000 during the period under review. He was first appointed to the FNB Botswana Board in August 2009 and chairs its Risk, Capital Management & Compliance Committee and Credit Risk Committee.
FNBB Board Chairman John Macaskill was paid P700 000. He has been with the First Rand Group since 1972. Formerly CEO of FNB Botswana (1996-2003), he has held various senior positions within the First Rand Group, including in South Africa, London and Hong Kong. Macaskill joined the FNB Botswana Board on 4 March 2014 and was re-elected as Chairman in January 2018 for one year.
Doreen Ncube, an independent non-executive director who was appointed in July 2015, earned P600 000. Non-executive director Ephraim Letebele earned P500 000 while Jabu Khethe, who chairs the FNBB board’s audit committee, also walked away with P500 000. Sifelani Thapelo and Dorcas Kgosietsile earned P200 000 each. Mmasekgoa Masire-Mwaba and Balisi Bonyongo earned P100 000 each, while Nelson Mokgethi earned P300 000.
Non-executive directors who work within the First Rand Group as executives do not receive directors’ fees. The fees are reviewed by the Remuneration Committee and are approved, in advance, by Shareholders at the Annual General Meeting.
For the June 2019, both profit before tax and profit after tax rose by 13 percent due to efficient management of all key income and expense drivers resulting in an improved return on equity of 22.7 percent (22.1 percent in 2018). Pre-tax profit was P945 million while post tax profit settled at P732 million.
FNBB is the most profitable commercial bank in Botswana. The second largest commercial bank by profitability is Barclays Bank Botswana, which is under the stewardship of Keabetswe Pheko. Sitting at a massive P7 billion, FNBB is also the largest bank in terms of market capitalisation, followed by Barclays Bank Botswana whose market value is at P4.6 billion.
Despite operating in a challenging environment, Barclays Bank Botswana achieved a profit before tax of P387 million on a statutory basis, representing growth of 49 percent during the 2018 full year.