04 Dec 2019

Bank of Botswana as the regulator of commercial banks has been encouraging banks to contribute more to corporate social responsibility causes, says the Minister of Finance and Economic Development, Dr Thapelo Matsheka.

Dr Matsheka, however, said availed information indicated a less than satisfactory investment in corporate social responsibility.

“As reflected, an average 0.2 per cent of turnover and 1.2 per cent profit is contributed by the concerned banks,” said Dr Matsheka.

Dr Matsheka was responding to a question from Selebi Phikwe West Member of Parliament, Mr Dithapelo Keorapetse who had asked for an update on the turnover and profit declared by First National Bank of Botswana, Barclays Bank of Botswana, Bank Gaborone Limited and BancABC over a period of five years since 2014.

Mr Keorapetse also wanted the minister to state how much was spent by each bank and projects funded through CSI and CSR, percentage of both turnover and profit that went to CSI and CSR from each bank.

Mr Keorapetse also asked the minister if he was satisfied with the level of commitment made by commercial banks in ploughing back to the nation that gives them business. 

Further in his response, Dr Matsheka said FNB had recorded an average turnover of P1.7 billion throughout 2014 - 2018.

“An average profit of P592. 7 million was made over the same period and an average of P4.2 million was spent on CSR projects over the same period,” he said.

Dr Matsheka added that in terms of CSR, as a proportion of turnover and profit, FNBB spent an average of 0.24 per cent and 0. 76 per cent respectively throughout 2014 - 2018.

About Barclays Bank, Dr Matsheka said the bank recorded an average turnover of P1. 6 billion throughout 2014 - 2018 and an average profit of P479. 5 million over the same period.

He said the bank spent P4. 1 million on CSR over the same period.

In terms of CSR, as a proportion of turnover and profit, Dr Matsheka said Barclays Bank spent an average of 0. 25 per cent and 0. 89 per cent respectively over the period in question.

As for Standard Chartered, Dr Matsheka said the bank recorded an average turnover of P887. 7 billion over the period between 2014 and 2018.

He added that an average profit P56. 2 million was recorded over the same period with an average of P1. 2 million spent on CSR.

He said in terms of CSR, as a proportion of turnover and profit, Standard Chartered had spent an average of 0. 13 per cent and 1. 79 per cent respectively over the said period.

Dr Matsheka said Bank Gaborone had recorded an average turnover of P191. 1 million over the five years and recorded an average profit of P20. 4 million over the same period.

Dr Matsheka said P354 000 was spent by Bank Gaborone on CSR.

“In terms of CSR, as a proportion for turnover and profit, Bank Gaborone has spent an average of 0. 20 per cent and 1. 53 per cent over the five years period.

Regarding BancABC, Dr Matsheka said the bank had recorded an average turnover of P55.3 million with an average profit of P125. 3 million between 2014 and 2018. 

Dr Matsheka said an average of P264 000 was spent by the bank on CSR over the said period.

Therefore, Dr Matsheka said in terms of CSR, as a proportion of turnover and profit, BancABC had spent an average of 0. 03 per cent and 0. 19 per cent respectively over the five year period.

Dr Matsheka also observed that some of the requested information was publicly available in published financial statements of each of the banks. ENDS