Standard Chartered smashes targets despite tough times
Standard Chartered Botswana released its 2025 Full Year Financial Results demonstrating a resilient performance amidst weakened economic circumstances.
The bank beat its own target of 25% Return on Tangible Equity (ROTE) by achieving 26%.
The year 2025 income closed at P950.8 million, down 11% year on year (YoY). Net interest income (NII) recorded a notable drop of 13% YoY and Non-funded income (NFI) reduced by 1% year on year to end the year with a 20.8% contribution to total income. Income performance was affected by deteriorated margins on asset products, due to a higher cost of funding when compared to the prior year, a reflection of the liquidity challenges in the market.
The focus on cost containment continued, whilst also exemplifying the efficiency of the Bank’s digitisation strategy as evidenced by the reduction in operating expenses by 9% to P556.8 million Year on Year; closing the period at 59% Cost to Income Ratio (CIR).
The CEO, Mpho Masupe shared the Bank’s position as it progresses the sale of the Standard Chartered Bank Botswana franchise, and its impact on clients, staff and the community.
“The Bank’s subdued performance and the reported profitability was impacted by a highly volatile liquidity environment and broader macroeconomic conditions. In addition, the financial results include a once-off impairment charge, arising from an accounting adjustment to reverse duplicated interest in suspense and was non-recurring in nature. Importantly, this adjustment does not reflect any deterioration in the Bank’s underlying asset quality or credit fundamentals, which remain stable and well managed”,” said the CEO.
He added that the Bank remains mindful of the challenging operating environment and the uncertainties that persist, but will continue to manage it with a strong focus on prudent risk management, cost discipline and capital preservation, while positioning the Bank to capture opportunities as conditions improve.
“The decision to sell the entire Standard Chartered Botswana franchise reflects the franchise’s full inherent value, the depth of our client relationships, the strength of our brand and the talent & expertise of our people. As we progress this transition, we are committed to preserving this value and ensuring continuity for our clients, colleagues and stakeholders.” Stated Masupe.
Segment Performance
In a year characterised by subdued economic activity and muted credit demand, the Bank’s business segments delivered resilient results, leveraging off the Bank’s global network and expertise to deliver to clients.
Wealth & Retail Banking (WRB)
The Wealth & Retail Banking segment achieved a significant step-up in wealth performance, consistent with its strategic intention to pivot towards the Affluent segment and Wealth solutions. Assets under management increased from BWP196m to BWP544m, representing a growth of 179% year-on-year. The strong momentum in wealth, including Foreign Exchange supports the segments’ ongoing transition towards a more diversified & sustainable revenue stream and reducing reliance on balance sheet-intensive activities.
Corporate & Investment Banking (CIB):
Operating income declined marginally by 5% Year on Year (YoY) to BWP328 million reflecting pressure on fee income and elevated funding costs in line with prevailing macroeconomic conditions, as well as subdued client activity.
Despite the headwinds, the segment exercised cost discipline, achieving a 52% reduction in operating expenses that resulted in a 40% increase in operating profit BWP228 million (before impairment losses & taxation). After accounting for credit impairment, the segment recorded a 1% increase in profit before tax to BWP187 million.
“As we reflect on the past year and look ahead to 2026, Standard Chartered Bank Botswana remains firmly anchored in its purpose as a global bank that connects corporate, institutional and affluent clients to a unique international network spanning Asia, Africa and the Middle East. This network continues to be our greatest strength, enabling us to support clients as they navigate volatile macro-economic conditions whilst accessing sustainable growth opportunities across some of the world’s most dynamic markets.” concluded Masupe.
Meanwhile Masupe emphasized that the change of ownership of the bank will not result in any job losses or inconvenience to customers.
