FNB Botswana (FNBB), Botswana’s largest bank by customer base, recorded a profit before tax of P1.8 billion for the year ended 30 June 2024. The bank also declared a 43 thebe dividend.
FNBB’s total advances increased by 14% to P19 billion for the year. Retail loans increased to P1.1 billion, an 11% growth, while commercial and corporate loans were up 16% and 20% respectively. The increased lending by the country’s largest commercial bank aligns with the central bank’s goal to use the low lending rates to boost economic growth which has been muted in 2024.
Non-performing loans were down by 10% to P777 million. The strong repayment environment is credited to Botswana’s strong macroeconomic performance driven by decreasing inflation which dropped from 4.1% in January to 2.9% in June.
As a result of the boost in lending and also strong growth in deposits, which increased by 28% to 30 billion, FNBB’s net interest income increased by 24% to P1.8 billion. The bank’s growth also appears to be efficient, with cost to income ratio currently at 49.4%.
For the bank’s shareholders, the bank declared a dividend of 43 thebe, a 34% increase from last year. The significant dividend came on the back of a 36% increase in return on equity, 24% in earnings per share and a return on assets of 4.2%.