Access Bank Botswana recorded a profit before tax of P60 million for the half-year ended 30 June 2024. It is a 235% increase from the P18 million profit that the bank recorded last year.
Access Bank's non-interest income grew by 69% to P136 million as a result of a boost in fees and commissions from its digital channels. In total, net revenue was P344 million, a 19% increase from last year's haul.
Although Access Bank saw a decline in loans and advances from P6.4 billion to P5.7 billion, deposits grew by 25% compared to June 2023, mostly driven by the increase in customer numbers off the back of the improvements in the customer value proposition and market liquidity increases.
Despite the dip in loans and advances, the bank's net interest income grew by 7% from P196 million to P210 million and the best credited muted interest expense due to significant effort made on reduction of cost of funding focusing on growth in current and savings accounts.
"Interest income increased by 1% compared to 30 June 2023 despite the decreases in the Monetary Policy Rate by the Bank of Botswana in December 2023 and June 2024 and despite a low credit appetite experienced from the market that has resulted in a declining loan book," Access Bank said.
"Interest expense has reduced by 5% due to the impact of the monetary policy rate and increased market liquidity that is driving down the cost of funding."