Standard Chartered Bank Botswana (SCBB) recorded a P254 profit before tax on the back of improved net interest income (NII) which grew by 15% to P426 million for the period ended 30 June 2024.
The bank credited the profit to steady growth in operating income, which grew to P548 million, cost management strategies and the quality of their loan book which saw Non-performing loans remain at 1.8%.
However, despite the so-called quality of the loan book, loans and advances were down significantly. Loans to other banks dropped from P70 million in 2023 to P10 million in 2024 while loans to customers decreased from P9 billion in June 2023 to P7 billion in June 2024. Despite the drop in loans and advances, SCBB maintained a strong advances-to-deposits ratio of 60% which boosted NII.
SCBB shareholders will be happy to hear that the bank's return on equity of 31% while its share price increased by as much as 58% for the reporting period.