21 Feb 2024

First National Bank Botswana (FNBB) has registered P879 million or 28 per cent rise in profit before tax for the six-month period ending December 31 last year.

Presenting the bank’s consolidated financial statements and dividend announcement in Gaborone on Tuesday, FNBB Chief Executive Officer, Mr Steven Bogatsu, and Chief Operating Officer, Dr Mbako Mbo, said their bank had registered broad-based profit during the period under review with commercial lending, retail and online transaction, among the key sectors driving growth.

Dr Mbo said the bank’s total balance sheet grew by 15 per cent annually as a result of growth in gross customer advances across its critical operating segments.

“The retail segment grew by seven per cent and this was driven by solid growth in the personal lending portfolio (secured and non-secured) following client value proposition enhancements on scheme lending and a refresh of the WesBank product offering. The commercial segment saw a 14 per cent growth in gross advances, with sectors like agriculture, retail and tourism, among others benefiting from this growth,” Dr Mbo said.

He added that the corporate segment increased by 24 per cent yearly, after registering 14 per cent growth during the same period of the previous financial year, largely as a result of financial solutions extended to the financial services sector, property sector and some state owned enterprises.

Dr Mbo said the bank’s client base increased by five per cent, while some of their key performance drivers in the transaction sectors included eWallet, where they registered 7.1 million transactions, and other online services such as airtime sales which recorded P340 million sales, CashPlus and the recently introduced eWallet Pro debit card.

Business lending, particularly in the agricultural and mining sectors, small micro and medium enterprise (SMME) lending, as well as personal loans, home loans and WesBank loans were among the key performance drivers in lending. Mr Bogatsu said FNBB had heeded pleas from their customers to reduce some transactional costs which led to the bank removing charges on some of them including electricity purchase, eWallet withdrawal and for free swiping for the use of an FNBB card if the swiping machine used by a business was from the bank.

Mr Bogatsu added that they were working towards concluding their Vision 2025 strategy, which he said, hinged around digital transformation, and was anchored around the five pillars of solution-oriented people, operational efficiencies, shared value and sustainability, being customer-centred and value protection. 

He further said although FNBB had looked to migrate to the digital space, the infrastructure of digital connectivity may not always support such, and therefore would maintain brick and mortar business in their 25 branches across the country, including the newly added Shakawe branch.

He said FNBB was particularly pleased to be involved with major projects that had strong potential for the economy, such as the Selebi Phikwe Citrus project.

He added that the bank had invested P12 million in corporate social initiatives and also engaged in sport sponsorship, notably P54 million recently injected into Botswana Premier League and women’s football national team, the Mares, over a three year period, in addition to their existing backing of the FNB Botswana Golden Grand Prix, Kazungula Marathon and FNB World of Golf at the Blue Tree. ends