- Bank reports resilient earnings despite tighter margins, rising funding costs and a challenging operating environment
GAZETTE REPORTER
Stanbic Bank Botswana maintained stable profitability in 2025 despite mounting pressure on margins and higher funding costs, according to the bank’s Integrated Report 2025.
Chief Executive Officer Chose Modise said the bank closed the year with a profit after tax of P710 million, marginally above the previous year, reflecting what he described as deliberate management actions and strong execution in a difficult environment.
“Despite tighter margins and rising funding costs, the bank delivered a full-year performance, closing with a profit after tax of P710 million, marginally above the prior year,” Modise said.
Total income increased by 3.2 percent year-on-year, although the composition of earnings shifted. Interest income benefited from portfolio reshaping and disciplined repricing, but higher fixed deposit costs pushed interest expenses sharply upward, resulting in lower net interest income.
Impairments increased compared with the previous year but remained within budget. The bank attributed this to proactive monitoring and customer-support initiatives, including Ledilame, which was designed to assist clients during a challenging economic period.
Non-interest revenue provided a significant boost to performance. Growth was supported by increased transactional activity, targeted segment-led campaigns and strong foreign exchange performance.
“This diversification reflects our deliberate strategic emphasis on building resilient revenue streams in a shifting operating environment,” Modise said.
Client Strategy
The bank said its strategy remained focused on clients, with emphasis on improving lending and deposit offerings, enhancing transactional value and strengthening service quality and speed.
According to the report, real-time feedback tools introduced across key customer touchpoints contributed to measurable improvements in customer satisfaction scores.
Within Enterprise Banking, Stanbic implemented a refreshed branch service model aimed at strengthening client engagement while continuing to encourage digital adoption.
The bank also expanded market engagement through several platforms, including Corporate and Investment Banking Connect sessions, the Budget Speech Economic Review and Analysis Webinar, and the inaugural Virtual Assets Conference held in partnership with NBFIRA. It also supported initiatives such as the Domestic Investor Roadshow and the Manufacturing Summit.
Growth Agenda
Looking ahead, Modise said the bank launched its new 2026–2028 strategy, known as Kgolo, in December 2025.
The strategy is intended to deepen client relationships through digitally enabled and insight-driven solutions while strengthening capital and liquidity resilience through disciplined balance sheet management.
It also aims to expand digital and data capabilities, improve productivity and operational speed, and accelerate growth in sectors aligned with Botswana’s economic transformation agenda.
“Our purpose – Botswana is our home, we drive her growth – remains the anchor of this strategy, guiding how we show up for our clients, our people, and our country,” Modise said.
The bank said Kgolo reinforces its commitment to supporting Botswana’s national transformation agenda and developing stronger trade and enterprise ecosystems for long-term shared value.