27 Mar 2017

In spite of sluggish economic growth, Barclays Bank of Botswana has recorded an impressive profit before tax of close to half a billion Pula, signifying the resurgence of one of the country’s oldest banking establishments.
The P494 million profit represents 49 per cent year-on-year growth for the year ended December 31, 2016.
Presenting their financial results in Gaborone on Thursday, Barclays Bank Botswana managing director, Ms Reinette van der Merwe said they had performed well in spite of challenges in the general economy.
“The bank delivered an excellent overall performance despite severe economic disruptions such as the slowing economic growth and a general slow rebound in commodity prices,” Ms Van der Merwe said.
Driven by growth in the Corporate and Investment Banking (CIB) as well as Retail and Business Banking (RBB) segments, the bank’s profit before tax grew from P332 million in the year ended December 2015 to P494 million.
Ms Van der Merwe said Barclays aspired to be the bank of choice for the public sector and the mining industry and looked to give quality service to a clientele of around 200 000 customers through its 1 100 employees and the use of mobile and online banking.
Barclays Botswana finance director, Mr Mumba Kalifungwa said their total income increased by 16 per cent from the previous year and that operating costs had increased by three per cent, which produced a cost to income ratio of 49 per cent.
“We have realised a balance sheet growth of 5 per cent, and declared a final dividend of P125 million, which is up by 51 per cent subject to regulatory approval.
Meanwhile, board chairperson, Mr Rizwan Desai praised the bank’s staff for achieving what he called ‘brilliant results’.
“We are in the middle of implementing a cohesive five-year strategy and this has been reflected in the results.
We have worked on innovative strategies, including linking mobile banking with our existing online services, ensuring that customers get the best service possible,” Mr Desai said.
He further said the pledge by London-based Barclays PLC to reduce its majority holding of Barclays Africa Group Limited by selling some of its shares would not affect the local bank.
“Barclays Bank of Botswana is a well capitalised, resilient instruction that will remain a part of Barclays Africa.
The disinvestment of Barclays PLC in Barclays Africa will not affect us, but present a chance for Barclays Africa to work on being more of a pan-African bank,” Mr Desai said. ENDS