Higher transaction volumes, foreign-exchange earnings and fee-based business helped FNB Botswana lift profit before tax despite sluggish credit demand
BONGANI MALUNGA
FNB Botswana’s growing transaction engine helped push profit before tax up 12 percent to P2.117 billion in FY2026, as increased activity across major business lines offset pressure from slower lending growth and tight domestic liquidity.
The bank’s latest integrated report shows profit before tax rising from P1.884 billion in FY2025, with management attributing the performance to strong foreign-exchange income, increased transaction volumes across major business lines and tight cost management.
Acting Chief Financial Officer Orapeleng Senwelo and Treasurer Tshepiso Mokgethi-Magapa said the performance demonstrated the resilience of FNB Botswana’s diversified operations.
RESILIENCE
“In FY2026, the Bank demonstrated the resilience of its diversified business model by achieving broad-based growth, prudent lending practices and maintaining strong balance sheet, good quality loan book, sound liquidity and capital management,” they said in their commentary accompanying the results.
The clearest growth driver was non-interest revenue, which jumped 30 percent to P2.314 billion, from P1.780 billion in the previous financial year.
According to the bank, the increase was supported by higher digital transaction volumes, increased payments activity, stronger foreign-exchange income and continued momentum in fee-based businesses such as merchant services and advisory activities.
FOREIGN EXCHANGE SURGE
Foreign-exchange income alone surged 113 percent to P970 million, from P456 million a year earlier, making it a major contributor to non-interest revenue. That performance is significant because traditional lending faced a more difficult operating environment.
Growth in advances slowed by 5 percent, with FNB citing prolonged weakness in the domestic economy, constrained liquidity, elevated funding costs and subdued demand for credit. Net interest income consequently declined by about 2 percent to P1.912 billion, from P1.953 billion.
Senwelo and Mokgethi-Magapa said the tougher environment required the bank to become more selective in lending and deployment of capital. “We carefully balanced supporting our clients through a difficult period with preserving loan portfolio quality, protecting liquidity and maintaining appropriate returns for shareholders,” they said.
MORE GROWTH
Gross interest income nevertheless increased by 16 percent, supported by similar growth in interest earned on advances, while investment securities income rose 27 percent as volumes increased. The bank also had to absorb rising expenses. Total costs increased 8 percent year-on-year, employee costs rose 5 percent, while other operating expenses climbed 11 percent, partly reflecting spending on technology, digital transformation, process optimisation and other strategic initiatives.
The results suggest FNB Botswana is increasingly extracting growth from customers’ day-to-day financial activity even as the conventional lending environment remains difficult. Higher payment volumes, digital transactions, merchant activity and foreign-exchange earnings provided the revenue momentum that credit growth could not.