- Net interest income up 36%, thanks to favourable lending conditions
- Growing transaction volumes drive non-interest revenue up 7%
- Customer deposits up 29 percent to P30.02 billion
GAZETTE REPORTER
FNB Botswana has reported a robust financial performance for the year ending 30 June 2024, driven by its disciplined approach to capital allocation and cost control.
According to the CFO of the bank, Dr Mbako Mbo, the results underscore the institution’s strategic focus on people, innovation, operational efficiency, and customer-centricity, which contributed to a 25-percent year-on-year increase in profit before tax.
Despite challenging macroeconomic conditions, FNB Botswana has demonstrated resilience in pursuing its long-term objectives, reaffirming its leadership position in the country’s financial sector.
Business momentum
The bank’s growth was fuelled by strong advances in both net interest income and non-interest revenue.
Net interest income rose by 36 percent, supported by effective balance sheet management, business momentum, and favourable lending conditions.
The bank’s non-interest revenue saw a 7 percent increase, reflecting growing transaction volumes and the enhancement of service offerings.
Said Dr Mbo at the announcement of the results in Gaborone recently: “Our growth in net interest income highlights our focus on maintaining a well-balanced portfolio.
Employee development
“Continued investments in technology, employee development, and customer experience are vital for our long-term sustainability.
The 16 percent increase in operating expenses reflects these strategic investments, particularly in our digital transformation journey.”
The bank’s cost-to-income ratio improved by 50 basis points to 49.4 percent, underscoring its operational efficiency.
At the same time, customer deposits surged by 29 percent to P30.02 billion, driven by initiatives aimed at expanding the customer base and boosting deposit inflows.
Fortitude and tenacity
FNB Botswana’s return on equity stood at an impressive 35.5 percent, highlighting the bank’s effective capital management and profitability.
Chief Executive Officer Steven Bogatsu described the bank’s financial performance as an indicator of its business model’s strength.
“FNB Botswana’s strong financial performance reflects the fortitude and tenacity of our business model, underpinned by our commitment to innovation and customer service,” he said.
“Despite a challenging economic environment, we continued to grow by focusing on digital transformation, financial inclusion, and sustainability.”
Shared value
Bogatsu added that FNB Botswana remains dedicated to providing a simplified customer experience at every touchpoint.
The bank’s Impact Plan 2024, a core element of its business strategy, focuses on delivering shared value for both the institution and the communities it serves.
Through the FNB Foundation, 1 percent of the bank’s profits are allocated to initiatives supporting education, job creation, skills development, and community welfare across Botswana.
In furthering the country’s sustainability goals, FNB Botswana disbursed P610 million in green loans during the year, aiding Botswana’s renewable energy sector.
CashPlus service
Additionally, the bank’s CashPlus service, which extends banking access to underserved and remote areas, saw a 43 percent increase in coverage, now reaching 1,481 agents.
The bank also prioritised local procurement, with 84 percent of its procurement spend paid to local suppliers, helping to empower Small and Medium Enterprises (SMEs) and create sustainable benefits for communities and stakeholders.
Looking ahead, FNB Botswana remains committed to its strategic goals. The bank aims to continue leading in digital transformation, enhancing customer experiences, and driving sustainability initiatives.
“Our focus on a high-performance culture ensures that we continue to invest in targeted programmes that prioritise employee growth and well-being,” Dr Mbo said.