Society’s assets increased by 278% in 20 years
Bank of Botswana (BoB) Governer Moses Palaelo has described the impact of Botswana Building Society (BBS) Limited on the country’s economic landscape as ‘phenomenonal’.
Speaking at the launch of BBS Limited’s Palapye Branch on Monday, Pelaelo said the financial institution has the potential to respond to economic opportunities, drive operational excellence as well as the capacity to meet diverse customer needs.
“Taking the 20 years to 2017, the assets of Botswana Building Society have increased at an average annual rate of 13.9 percent,” revealed the country’s treasurer general at the official opening of BBS’s 10th branch.
“This compares with an annual growth rate of 16.2 percent for commercial banks and 12.3 percent average annual increase in nominal Gross Domestic Product (GDP). This suggests a meaningful contribution to the economic and financial development of the country,” continued Pelaelo, adding the average annual growth in residential mortgage loans was 14.2 percent, compared to 21.8 percent for commercial banks.
Another interesting comparison is that outstanding residential mortgages by BBS as at the end of June 2018 amounted to P2.9 billion, constituting 31 percent of the total of P9.3 billion for the commercial banks.
“For the individual banks, the amounts ranged from a smallest value of P2.3 million to the largest amount of P3.2 billion. So, with the BBS’s outstanding residential mortgages amounting at P2.9 billion, the bank is not very far from outperforming the rest,” he noted.
“The expectation of BoB is that this transformation and growth will be prudently managed and achieved in an environment of sound operations, to ensure durable and beneficial impact on the economy,” Pelaelo stressed.
BBS Limited Managing Director, Pius Komane Molefe said the expansion by the financial institution is part of its new vision to commercialise so that even more services and products can be extended to Batswana across the country.
“Our vision also shows that as BBS Limited, we understand the needs of Batswana and one of them is that it is time for Botswana to have its own home grown commercial bank,” said Molefe.
Apart from this, Molefe said when the idea of commercialising BBS was first mooted, it was out of the realisation that transformation is happening rapidly in various industries not least the financial services sector.
BBS has since transformed from a friendly and mutual society to a public limited company and became incorporated in April 2018.