BBS on track to commercialise
The Botswana Building Society (BBS) is working around the clock to ensure they operate as a commercial bank by the second half of 2022.
Commenting on the bank’s financials for the year ended December 31, 2021, the bank’s managing director, Pius Molefe said they are back on track and are working very hard to satisfy Bank of Botswana’s (BoB) conditions to become the first indigenous bank.
“I will not mention the conditions here due to the sensitivity of the process, but I can assure you that we would be able to satisfy them with the support of relevant shareholders. BBS Limited is indeed poised to become a successful indigenous commercial bank,” he said. Last year, the BoB approved the BBSL banking licence application with conditions to be met before a commercial banking licence can be granted.
BBS subsequently made a fresh application late in 2020 after the bank withdrew its original application for a banking licence in October 2019 due to problems with the banking system it had acquired in preparation for commercial banking activities.
However, Molefe is optimistic about the move, saying that they had managed to build a solid mortgage and retail customer base as well as generate a sustainable brand with a tangible track record in Botswana over the years. “We have come up with a corporate strategy that leverages on this admirable legacy. There will be a broader range of products and services, many of which will be digitally enabled for the convenience of users while also adding to the bottom line. We are also excited that unlike in the past, our information technology platforms such as our ATM network will be VISA-enabled. BBSL is changing in a very big and commercially meaningful way,” he said.
Meanwhile, the bank’s mortgage loans and advances were reduced by eight percent from P3.4 billion recorded as at December 31, 2020, to P3.1 billion as at December 31, 2021.
Molefe said their mortgage loans and advances book has been stagnant due to the prudent lending measures and mitigations implemented by management to manage the liquidity challenges resulting in the company experiencing reduced uptake of mortgage loans and advances and an increased level of attrition.
“This resulted in a significant decline of the mortgage book, which is our core product and consequently loss of interest income and related non-interest income. The trend was noted since the beginning of the year and continued until year-end,” he said.