Access Bank Botswana’s profit fell 20 percent in 2025 as higher funding costs, impairments and operating expenses outweighed stronger lending and non-interest income.
BONGANI MALUNGA
Access Bank Botswana’s profit after tax fell 20 percent to P79.9 million in 2025, despite growth in its loan book and non-interest income, as funding costs, impairment charges and operating expenses weighed on earnings.
According to the bank’s 2025 Integrated Annual Report, published on the Botswana Stock Exchange on September 25, profit declined from P100.1 million in 2024. Profit before tax fell 23 percent from P134.6 million to P103.6 million.
INCOME SQUEEZE
Interest income increased six percent to P939 million from P888.5 million as lending expanded. Interest expenses, however, climbed 20 percent to P570.2 million from P474.6 million, pushing net interest income down 11 percent to P368.8 million from P413.9 million.
Non-interest income partly offset the pressure, rising 26 percent to P373.8 million from P296.5 million. Trading income more than doubled, increasing 117 percent to P84 million from P38.7 million, while net fee and commission income rose 12 percent to P289.8 million from P257.8 million.
IMPAIRMENTS CLIMB
Impairment charges on financial assets more than doubled to P80.2 million from P39.5 million, adding further pressure to profitability.
Operating expenses rose four percent to P545.6 million from P526.6 million. Personnel expenses increased 19 percent to P252.5 million, while general and administrative expenses declined to P193 million from P210.5 million.
BALANCE SHEET
Despite weaker profits, Access Bank expanded its balance sheet. Total assets rose seven percent to P10.81 billion from P10.07 billion, while gross loans advanced about 13 percent to P6.75 billion from P5.95 billion.
Customer deposits increased three percent to P7.48 billion from P7.26 billion and total shareholders’ equity strengthened to P1.15 billion from P1.07 billion. The cost-to-income ratio improved slightly to 73.5 percent from 74.1 percent, while the capital adequacy ratio eased to 18.3 percent from 21.7 percent. Basic earnings per share declined to 11 thebe from 13.81 thebe.