Records P685 million profit-after-tax in six months
First National Bank Botswana (FNBB) has brought home the bacon once again, recording profit-after-tax of P685 million from July to December last year.
The bank’s success was good news for the tax-man too, with FNBB paying-out P193 million in tax for the six-month period.
The institute’s financial triumph marked a staggering 28 percent increase from the P535 million it raked in after tax in the corresponding half-year period in 2022.
Total income grew 22 percent year-on-year, eclipsing the 16 percent growth in expenses over the same period.
Speaking at the presentation of the financial results in Gaborone last week, FNBB Chief Financial Officer (CFO), Dr. Mbako Mbo noted the increase in profitability reflects the bank’s commitment to efficient management and forward-thinking planning.
“This growth underscores the bank’s professional and balanced strategy towards sustainable development and banking excellence. Further, us FNBB we remain dedicated to continued growth, customer satisfaction, and significant community investments, empowering the communities we serve,” declared Mbo.
Continuing in the same vein, FNBB Chief Executive Officer (CEO), Steven Bogatsu, highlighted the bank’s ethos of putting customers at the heart of everything they do.
“This is evident in our involvement in the Citizen Economic Empowerment Programme and the enhancement of our banking platforms, transitioning towards a suite of digital banking services. Our strategic direction is focused on crafting seamless banking experiences, steering our customers from traditional branch transactions to digital platforms for more convenient, efficient, and accessible banking,”said Bogatsu, adding the approach not only aligns with FNBB’s commitment to shared prosperity and Environmental, Social, and Governance (ESG) principles but reinforces the bank’s dedication to sustainable and inclusive financial services.
The latest national accounts data released by Statistics Botswana in December indicate the domestic economy averaged 3.0 percent during the first three quarters of 2023, compared to an average of 5.5 percent over the same period in 2022.
This slowdown in growth largely reflects the relatively weak performance of diamond trading and mining activities across 2023.
Against this, the domestic economy is estimated to have grown by 3.2 percent last year, revised downwards from 3.8 percent that was earlier predicted.
Over the short to medium term, it is anticipated that the domestic economy will rebound to 4.2 percent and 5.4 percent in 2024 and 2025, respectively, as the world economy recovers.
“Botswana’s extractive industry and expansionary fiscal policy will fuel economic growth. Despite the risks of currency fluctuations, the nation’s focus on upgrading infrastructure, bolstering business support, and promoting social welfare is paving the way for a thriving future. This balanced approach ensures Botswana is well-positioned to overcome challenges and capitalize on opportunities for sustainable development ,” said FNBB economist Gomolemo Basele, saying Botswana’s economic performance has been resilient despite global uncertainties.