03 Aug 2022

Bank of Botswana has recorded a five per cent increase in total assets and liabilities from P54.5 billion in 2020 to P57.2 billion in 2021.

According to the bank’s annual report, the growth in the balance sheet was mainly due to the five per cent increase in foreign exchange reserves, including the 8.1 increase in the Pula Fund and 191.5 per cent rise in assets at the International Monetary Fund.

The statement of financial position of commercial banks grew by 5.2 per cent from P103.3 billion in December 2020 to P108.6 billion in December 2021.

The report states that Botswana Building Society (BBS) total assets and liabilities decreased by 6.6 per cent from 4.1 billion in December 2020 to P3.8 billion in December 2021.

 For Botswana Savings Bank (BSB), total assets and liabilities increased by 16.4 per cent in December 2021 from a decline of 9.2 per cent in 2020.

With regard to other financial cooperation, Botswana Development Corporation recorded a 19.2 per cent increase on total assets and liabilities from P4.2 billion to P5 billion between 2020 and financial year ending 2021.

According to Bank of Botswana’s annual report, the performance was primarily attributed to an increase of 57.1 per cent in borrowing, which translated into increased loans, advances and leasing by 37.4 per cent.

“There was also a 77.8 per cent increase in deposit holdings from commercial banks as well as a 1.4  per cent increase in investments related companies.

Fixed assets, however, decreased from P124.9 million to P118.2  million in the same period,” states the report.

The statement of financial position of the National Development  Bank (NDB) decreased by  0.9  per cent from P1.23 billion in December  2020 to  P1.22  billion in December 2021, compared to an increase of  17.2 per cent in 2020.

“The contraction of the statement of financial position of National Development  Bank is attributed to a reduced loan liabilities, which declined by 8.9 per cent while capital and reserves increased by 3.3 per cent in the same period,” says the report.

Citizen Entrepreneurial Development Agency’s (CEDA) statement of financial position indicates a decrease of 12.2 per cent to P1.6 billion in December 2021 from P1.8 billion in December 2020.

The decline in the statement of financial position was due to a decrease in loans and advances as well as a decline in cash balances by 59.5 per cent 8.2 per cent and 59.5 per cent respectively in 2021.

 The Bank of Botswana annual report further states that Botswana Stock Exchange (BSE) Domestic Company Index increased by 1.9 per cent in December 2021 following a decline of 8.2 per cent in 2020.

The increase was due to the listing of Access bank following its 78.15 acquisition of BancABC Botswana during the year. ENDS