First National Bank's "broader Africa" segment recorded a 20% growth in profit before tax to R3.5 billion, driven by a significant increase in advances with Botswana leading the way.
Taking into consideration both the "broader Africa" and South Africa segments, FNB recorded a profit before tax of R32 billion.
This was revealed by parent company FirstRand in its annual results released on Thursday.
"[FNB's] broader Africa advances increased 7%, driven by good growth across the portfolio, particularly in Botswana," FirstRand said. "The origination strategy, combined with good credit risk management and collections efforts, continues to yield positive outcomes."
In total, FNB's "broader Africa" segment recorded advances of R38 billion, with Botswana increasing by 14%.
FirstRand's corporate and investment bank, Rand Merchant Bank (RMB) Botswana, also recorded a growth in profit before tax (PBT) of 31%, mainly driven by a significant increase in loans and advances. Deposits growth, margin expansion and reduced impairments were also cited as contributors.
In addition to their appetite for advances, Batswana also paid back their credit facilities significantly as noted by a significant decrease in stage 2 advances. Stage 2 advances refer to underperforming advance that have seen a significant increase in credit risk.
FirstRand alluded this to the country's improved macroeconomic environment which has enabled debtors to honor their repayment commitments.
"Broader Africa stage 2 advances decreased, driven in part by reduced Significant Increase in Credit Risk (SICR) exposures due to an improvement in the macros, most notably in Botswana," FirstRand added.