Access Bank expects low profits

Access Bank Botswana expects its pretax profits for the year ended December 2021 to be lower year-on-year by as much as 85%, due to non-recurring write-offs and other expenses associated with the bank’s transformation from BancABC Botswana. Access Bank, a major Nigerian financier last year became BancABC Botswana’s major shareholder, after snapping up the 78% equity held by ABC Holdings. The bank was subsequently bundled into the Access Bank group, including the change of name and branding. The results for the year to December 31 represent the first look at the local bank’s financial performance after the takeover, although they do not represent a full year of operation. In a statement to investors this week, Access Bank Botswana directors said the non-recurring write-offs and integration costs associated with the transaction were expected to weigh on the pretax profits for the year ended December 31. At most, Access Bank Botswana expects profit before tax to drop to as low as P18 million, from the P119 million recorded in the year to December 2020. Directors however said the bank’s underlying performance remained steady, with increases in lending and deposits, while non-interest income also continued satisfactorily. Directors said the bank has begun a P200m investment programme aimed at enhancing its distribution footprint and leveraging group digital assets to move beyond a lending dominated book into a full-service digital banking ecosystem with diversified revenue lines. The results for the year ended December 2021 are due to be released before the end of March.