ABSA Botswana recorded a profit before tax of P563 million boosted by a 12% increase in net interest income and a 14% increase in net operating income, which increased to P761 million and P1.1 billion respectively.
The profit before tax represents a 26% increase from last year's figure.
The bank only saw a muted 0.1% growth in overall loans and advances, while deposits grew by 0.8%. Retail customers carried most of this growth, accounting for a 14% and 2% growth in loans and deposits respectively. Overall, ABSA also increased retail customers by 4%.
Business banking on the other hand saw a 5% decline and a 32% increase in loans and deposits respectively.
"Our commitment to diversifying revenue streams is bearing fruit, as evidenced by an 11% growth in fee and commission income, supported by digital initiatives and broader diversification efforts," ABSA said. However, it is important to note that despite this increase in fee and commission income, expenses related to the line item were up by 92%, meaning that in net terms, fees and commission income were up by only 2%.
After a 22% increase in earnings per share, the bank has also announced a dividend of 23.47 thebe per share, translating to around P200 million paid out to shareholders.