01 Apr 2024

Amid a volatile economic climate, Absa Botswana has recorded a profit before tax of P831 million for the year ending December 2023.

This according to the bank’s Managing Director, Ms Keabetswe Pheko-Moshagane demonstrated the bank’s resilience and adaptability in a challenging operating environment.

Ms Pheko-Moshagane who was speaking during the announcement of the bank’s financial year results of the year ending December 2023 in Gaborone recently said the bank surpassed expectations, and that demonstrated strength of its business model and ability to navigate a volatile market environment.

She said the bank navigated a business landscape that was marked with both opportunities and challenges, through leveraging on strengths, embracing innovation, and staying attuned to evolving market dynamics hence it was well-positioned to navigate the terrain ahead and drive sustainable growth.

Also, Ms Pheko-Moshagane said the bank projected the country’s economy to grow by 3.6 per cent in 2024 supported by increased capital spending from the stimulus budget. She added that while diamonds had shown some improvements in the first two sales cycles of the year, it was anticipated that they would continue to be impacted by the global slowdown and a shift in customer spending patterns leading to a decline in demand.

Ms Pheko-Moshagane said the proposed G7 countries diamond traceability programme could continue to take centre stage around diamond outlook, hence the bank remained vigilant in the face of external factors.

She said the bank was vigilant to adverse weather conditions, particularly the effects of El Niño, which could have a bearing on its growing agri-business portfolio.

Ms Pheko-Moshagane said the bank forecasted its 2024 financial performance to be lower than that of 2023.
Absa Financial Director, Ms Cynthia Morapedi said the banks total revenues for the year amounted to P2.1 billion, but the operating expenses at P1.2 billion remained a material contributor to the performance.

Ms Morapedi said for the year under review, the bank had some material once off transactions which contributed to overall cost growth such as the restructuring exercise which its costs amounted to P91 million.

Nonetheless, she said Absa’s total balance sheet was positive, having closed the year at a total financial position in excess of P24.6 billion. She said customer loans and deposits remained key drivers of the bank’s balance sheet and had maintained both structure and integrity of the bank’s balance sheet year on year.

Also, Ms Morapedi said due to financial performance and the stability of the bank’s balance sheet and the adequacy of capital, the Board of Absa Bank Botswana resolved to declare a final dividend of P375 million. Ends