ABSA BOTSWANA RECORD P395 MILLION PROFIT
ABSA Bank Botswana has a P395 million profit before tax in the released interim half-year results, a 36 percent increase compared to the June 2021 results, signalling a great recovery, which positions the bank favourably and allows future growth and absorption of potential shocks.
The profitability of Absa has been driven by an 8 percent increase in net interest income, 72 percent reduction in credit losses, 42 percent increase in trading income and a further 7 percent increase in net fee and commission income while loans and advances to customers noted a strong growth with an increase of P15.6 billion from P14.8 billion noted therefore showing a growth of 5 percent as compared to the previous period. This has resulted in a total of P103 million declared in dividend for the shareholders.
Speaking at the presentation of interim half-year results for period ending June 2022, Absa Bank Botswana Managing Director, Keabetswe Pheko-moshagane, said the solid performance has been made possible by the support of their customers and commitment of employees and guidance from the board.
“Our financial results are solid and not only showcase our success in executing our strategy but our purpose of bringing possibilities to life. We have navigated the challenging operating environment and achieved a strong set of results as evidenced by our growth in profitability,” she said. With regards to revenue, Absa Bank stands at a total of P881 million, indicating an 11 percent growth while operating costs reached P473 million .
“Our revenue is commendable given the challenged and disrupted economic and trading economic environment we had to navigate in 2022.We have seen a sprout on the cost of funding curve, which speaks to the challenges of our trading environment,” said Absa Bank Botswana Finance Director, Cynthia Morapedi.
Morapedi further said their customers’ deposits showed muted performance mostly due to the challenging economic conditions prevailing.
“Client penetrative and acquisition strategies continue to be pivotal to our business strategy as we find new and innovative ways to support customers during these difficult times,” she said.
The bank hopes to build on the current results to improve further in the second half of 2022 despite projected hig=h inflation set to average 12.7 percent.