Absa Botswana increases profit

Absa Bank Botswana recorded a significant increase in profit after tax by 125 percent to P213 million due to improvement in credit losses driven by solid credit risk management strategy. The bank’s loan book and advances to customers increased to P14.8 billion from P13.6 billion while customer deposits increased to P16.2 billion from P14 billion. Presenting the results on Friday, Absa Bank Botswana Managing Director, Keabetswe Pheko-Moshagane said the results are testimony to the decisions the bank took during the crisis in supporting customers and taking a cautious approach to preserve capital and liquidity. She said the bank further strengthened its capital reserves during the period and maintained a strong liquidity position in the first half. “We have also enhanced our Customer Value Proposition by offering tailor made solutions to our customers. We continue to offer payment holidays and restructuring of customer loans on a case-bycase basis depending on the level of impact that the pandemic has had on customer businesses and lives.” She said the bank remains resolute in executing its strategy despite the challenges imposed by the pandemic and fluid operating environment. “We continue to heavily invest in technology to create customer convenience. For example, ‘Digital Corners’ have been introduced at branches to induct our customers to the digital world and educate them on the precautions to take when transacting on digital platforms. We are at an advanced stage of launching new market digital solutions which we will announce in the not so distant future.” Pheko-Moshagane said the bank continues to operate in a volatile, unpredictable environment due to the COVID-19 pandemic which comes with new waves of infections and variants, restricted movement, and trade. “As part of our strategy to provide customer centric transactional banking solutions, we have rolled out enhancements to our existing digital platforms and continue to develop new solutions that offer our customers convenience and safety.” For her part, Absa Chief Finance Officer, Cynthia Morapedi said they have noted the resilience in their revenue line declining by one percent to P795 million. She said net interest income remains under pressure as expected. “Despite the significant growth noted on the loan book, Net interest income remained largely subdued, closing the first half of 2021 with an eight percent decline compared to last year same time. This is on account of margin compression due to the interest rate cuts that happened in 2020.”