FNBB to Continue Investing in Digital Platforms

  • Profit after tax up 35% to P927m year-on-year
  • Non-Performing Loans down 26% to P802m
  • Deposits have remained flat at P22.2bn year-on-year

GAZETTE REPORTER

Leading commercial integrated service provider, First National Bank Botswana (FNBB), will continue to invest in its digital platforms, not only to drive improvement of both the customer and employee experiences but also to enable the bank to remain nimble and responsive to new key technology, the top brass of the bank has said.

Well-placed for growth
According to FNBB Chairman Balisi Bonyongo and CEO Steven Bogatsu, FNBB has continued to deploy its financial resources appropriately and prudently to leave the bank well-placed for growth.

Writing in FNBB financial statements for the full year ended 30 June 2022, the two said the bank’s investment into its digital platform solution has generated efficiency and improved customer and employee experience through all interfaces.

“Growth is evident in registrations across all digital platforms, with customers appreciating the ease of electronic transactions, as well as the options to serve themselves in the form of convenient, value-added services,” they said.

“A forward-thinking approach to technology and innovation remains a priority for FNBB. The bank’s workforce operates under a blended work model, balancing remote working with face-to-face interactions.”

Nimble and responsive
Bonyongo and Bogatsu emphasised that the bank will continue to invest in digital platform in order to drive improvement of both the customer and employee experiences, as well as to enable it to remain nimble and responsive to new key technology as it arises within an increasingly dynamic ecosystem.

“Risk management and prudential deployment of resources remain the foundational principles in all investment and development decisions,” they said.

This is the bank that achieved excellent growth in profit before tax in the period under review was underpinned by a normalisation of credit losses and a sharp increase in the non-interest revenue (NIR) base.

“Return on equity of 25.7 percent (2021: 18.4 percent) has increased due to the conservative level of capital held in the prior period, as well as the 35 percent increase in profit after tax from P685 million in 2021 to P927 million in the year under review,” they noted.

“FNBB focused on partnering with clients as the economic recovery transpired, while ensuring the strengthening of the balance sheet through both prudent provisioning as well as maintaining robust capital levels.”

FNBB’s Non-Performing Loans (NPLs), on the other hand, declined by 26 percent year-on-year from P1.1bn to P802m, resulting in an NPL/gross advances ratio of 5 percent as at 30 June 2022 (7.3 percent as at 30 June 2021). Deposits remained flat at P22.2bn following corporate outflows as trading levels normalised and the Botswana grey list status was uplifted.