BBS Bank share price increases

BBS Bank Limited ( BBS) share price appreciated by two percent on the Botswana Stock Exchange ( BSE) during the first quarter.

The bank recently joined the clearing and settlement system and revamped its Nomad Digital Banking platform which enables customers to bank from anywhere in the world, at any time. As of Wednesday, BBS was trading at 50 thebe on the BSE Serala Board. BSE market performance report indicates that from January to March 2024 period, BBS was among the 15 companies which appreciated in share price. Since listing on the BSE in 2018, the bank’s share price has been depreciating due to transformational exercise. After listing at P1 per share in 2018, the bank’s share price increased to P1.15 thebe per share but has been declining over the years. In its financial year ended December 2023, the Bank recorded a loss before taxation of P28.2 million, compared to a loss of P21.6 million in 2022. The Group’s management stated that despite not achieving profitability yet, they express confidence in the business’ sustainability and its potential for growth. No dividend was declared during the period. “The outlook for BBS Bank is optimistic as we anticipate a positive trend in shareholder value growth starting in 2024. We greatly appreciate the patience and trust shown by our shareholders and other stakeholders since 2018 as they held onto their shares and supported the decisions of the Board and Management.” In the published financial results, BBS Managing Director, Pedzani Tafa stated that Management has made an assessment of the Group and Company’s ability to continue as a going concern and is satisfied that the Group and Company has the resources to continue in business for the foreseeable future. “There are significant judgements involved in the assessment of whether the going concern assumption remains appropriate. This going concern basis applied presumes that resources will be available to finance future operations and that the realisation of assets and settlement of liabilities will occur in the ordinary course of business.” During the year, customer deposits increased by 55 percent to P4.2 billion, compared to P2.7 billion recorded in 2022 due to the support that BBS Bank received from customers upon becoming a commercial bank. The initiative to increase deposits was broadened in 2023 to meet the funding requirements of the unsecured Personal loan. The net growth by year end amounted to P1.5 billion.