Botswana's first indigenous bank BBS Bank posted a profit of P38 million for the financial year ended 31 December 2024, a massive swing of fortunes from the P21 million loss posted in financial year 2023.
It is the first time that BBS Bank has posted a year of profitability since 2018.
Net interest income, which is the difference between the cost of liabilities like deposits and assets like loans, increased to P206 million from the P123 million posted in 2023, a 68% increase.
This was driven by significant growth in the loan portfolio, particularly the unsecured book, which contributed P155 million in interest income compared to P31 million for the year ended 31 December 2023.
Net non-interest income (fee and commission income) reduced by 14% to P38 million from P44 million in 2023, which the bank blamed on reduced insurance commission in the insurance agency business.As a result of these movements in interest and non-interest income, BBS Bank's total income came in at P261 million.
Net loans and advances reached P4.6 billion while deposits were P4.5 billion, contributing to total assets and liabilities of P5.6 billion P5 billion respectively.
With total cash reserves of P508 million, BBS Bank will be looking to put that to work to continue the current growth momentum.
"The board, management and staff remain committed to building on this momentum, enhancing our offerings, and ensuring that our stakeholders benefit from our continued success in the years to come," BBS Bank said.