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FNBB shares with communities

14 Sep 2023

First National Bank of Botswana (FNBB) has reviewed its procurement policy to give more prominence to local procurement with clear intentions to increase spending on locally owned businesses.

Briefing the media Wednesday on dividend announcement in Gaborone, FNBB Chief Executive Officer, Mr Steven Bogatsu, said for the year ending June 30, 2023 his bank managed to sign agreements with large corporates in the mining sector.

Mr Bogatsu said this was to intentionally provide working capital to local enterprises who participated in the supply value chain.

“Under the Human and Social Development focal area, FNBB has taken an early lead in financial inclusion with eWallet volumes reaching 12,5 million transactions annually in 2023, supported by a CashPlus agent network which increased to 1 099 outlets in 2023, these are spread throughout the country,” he said.

In addition, Mr Bogatsu said the bank remained committed to its social responsibility to the community, citing that the FNBB Kazungula Bridge Marathon surpassed the inaugural instalment in the prior year.

He said the marathon was an event accredited by World Athletics, the international governing body of athletics.

Also in sports, Mr Bogatsu said the bank through the FNBB Foundation sponsored the FNB Botswana Golden Grand Prix bringing it to Botswana for the first time.

Mr Bogatsu said this was an internationally recognized athletics competition known for attracting the world’s best athletes.

He said going into the next year, the bank set ambitious targets to contribute meaningfully to the sustainable environment agenda.

Meanwhile, FNBB Chief Financial Officer, Dr Mbo Mbako, said the bank’s balance sheet grew nine per cent year-on-year, driven mainly by growth in advances to customers across all segments.

Dr Mbako said corporate advances were 11 per cent up, while commercial and retail advances were eight and seven per cent respectively.

“The growth in corporate advances was driven by working capital support to State Owned Enterprises (SOE) and Fast Moving Consumer Goods (FMCG) sectors, as well as leverage finance deals in the financial services sector,” he said.

Key deals in the tourism, fuel and agriculture sectors supported growth in the commercial advances book, while personal loans in the retail book grew on the back of extended tenures and ticket size limits to individuals within group schemes.

Dr Mbako said at gross level, the bank advances grew by eight per cent, and Non-Performing Loans (NPLs) increased by eight per cent year-on-year from P802 million to P863 million, with the NPL/gross advances remaining flat at five per cent year-on-year. Ends

Source : BOPA

Author : Marvin Motlhabane

Location : Gaborone

Event : Media briefing

Date : 14 Sep 2023