Bank reports profit rise, outlines investments in technology and sustainability
GAZETTE REPORTER
FNB Botswana says it remains focused on delivering stronger client experiences through digital platforms, operational efficiency, and sustainability initiatives. The bank outlined its priorities and financial performance in its audited summarised consolidated financial statements and dividend announcement for the year ended 30 June 2025.
Digital and operational priorities
“Building on last year’s successes, new projects in the pipeline will focus on further embedding digital channels, enhancing mobile capabilities, and reconfiguring physical infrastructure to better support customer needs in key locations,” said FNB Botswana Chief Executive Officer Steven Bogatsu in the results.
He added that operational efficiency remains a core focus, with intensified efforts to modernise internal systems. “Key technology-driven projects will continue to receive strategic investment, particularly those leveraging data science, artificial intelligence, and automation to improve both customer and employee experience,” he said. The bank is also strengthening cybersecurity controls.
Employee and sustainability agenda
Looking ahead, Bogatsu said the bank will evolve its Employee Value Proposition to focus on talent development, leadership capability, wellbeing, and inclusion.
Sustainability will remain central to its long-term growth strategy. Having established environmental, social and governance (ESG) frameworks in prior years, the bank said it will now accelerate implementation, including initiatives around green financing and its Diversity, Equity, Belonging and Inclusion (DEBI) agenda.
Advances and lending trends
On financial performance, advances grew 11 percent year-on-year, with corporate lending up 23 percent. This growth was supported by activity in the mining, building and property development, and financial services sectors. The bank also continued lending to state-owned enterprises in energy and agriculture, as well as institutions in the non-banking financial services sector.
Retail advances rose 5 percent, led by personal loans, while commercial advances increased 19 percent, driven by demand from fast-moving consumer goods and oil clients. WesBank recorded portfolio growth following a revamp of its offering in the prior year.
Asset quality and deposits
Non-performing loans (NPLs) declined 20 percent year-on-year, with the NPL ratio closing the year at 3 percent, down from 4 percent previously. Bogatsu said this reflected prudent credit risk management.
Retail deposits grew 8 percent, supported by targeted mobilisation efforts, but overall deposits declined 12 percent. Corporate deposits fell 30 percent and commercial deposits dipped 1 percent. The reduction in deposits drove a 5 percent decline in the bank’s balance sheet during the year.
Profit before tax up
The bank recorded profit before tax of P1.884 billion, up 6 percent year-on-year. Total income after impairments rose 5 percent, while operating costs also grew 5 percent. The cost-to-income ratio improved to 47.5 percent from 49.4 percent the previous year. Interest income increased 6 percent, while interest expense fell 4 percent, reflecting the reduced deposit base and a shift towards transaction balances.
Non-interest revenue reached P1.780 billion, up 12 percent year-on-year, supported by higher transaction volumes and customer growth of 7 percent.
Costs and workforce investments
Employee expenses increased 13 percent, reflecting ongoing investment in talent development and retention. Other operating expenses declined 3 percent due to cost control and process optimisation.
Bogatsu said the bank remains in a strong capital and liquidity position despite near-term macroeconomic challenges, which allows it to continue supporting clients and pursuing sustainable growth.