BBS forecasts more losses
Botswana Building Society Limited chairperson, Pelani Siwawa- Ndai said they anticipate recording another loss in the next financial year due to their continued investments in systems and human resources.
In the financial year ended December 2020, the bank recorded a loss of P14, 652 million compared to a loss of P35, 761 million in the previous year. “I would like to caution you that in the coming year we anticipate recording another loss because of continued significant investments in systems and human resources in line with our commercial aspirations,” said Siwawa- Ndai. She said they hope to start operating as a commercial bank by the last quarter of 2021. “An update on the application for a banking licence by BBS Limited will be provided at the meeting of Shareholders.”
The bank’s total balance sheet declined by 12 percent from P4,626 billion. Mortgage loans and advances improved from P3,401 billion to P3.408 billion, representing an increase of one percent while total savings and deposits declined by 14 percent from a balance of P2,885 billion in 2019 to P2,494 billion in 2020. BBS Managing Director, Pius Molefe said 2020 has been the most - challenging year for the company due to the difficult economic environment and the negative impact of the coronavirus. He said in response to these challenges, the Company put in place several measures to ensure that the business withstands the impact of corona virus and also to cushion mortgage
customers from the effects of the pandemic. “Since April 2020 up to the end of December 2020, BBSL assisted 555 mortgage customers with a payment holiday.”
Molefe said they are hoping for a positive outcome during the implementation of the new BBS Limited corporate strategy, whose main drive is commercialisation of operations, which is in full force. “It will be spurred on by the positive results we have achieved for the year ended 31 December 2020, and our planned submission of our banking licence application to Bank of Botswana. We are hoping for a positive outcome during the course of the year.”