BBS reports P14m loss after giving over 500 mortgage customers payment holiday

BBSL recorded a loss of P14.652 million compared to a loss of P35.761 million for the year ended 31 December 2019

BBS reports P14m loss after giving over 500 mortgage customers payment holiday
BBS Managing Director Pius Molefe

Since April 2020 up to the end of December 2020, Botswana Building Society Limited (BBSL) says it assisted 555 mortgage customers with a payment holiday.

In response to these challenges, Managing Director Pius Molefe says the company put in place several measures to ensure that the business withstands the impact of coronavirus and also to cushion mortgage customers from the effects of the pandemic. “The financial year ended 31 December 2020 has been the most challenging for the Company, its Shareholders and customers due to the difficult economic environment and the negative impact of the coronavirus,” he wrote in the organisation’s results for the year ended 31 December 2020.

Given the challenging economic conditions and continuing investments to transform BBS Limited, it did not record a profit. BBSL recorded a loss of P14.652 million compared to a loss of P35.761 million for the year ended 31 December 2019. “We are also hoping for a positive outcome during the implementation of the new BBS Limited corporate strategy, whose main drive is commercialisation of operations, which is in full force,” Molefe says adding that it will be spurred on by the “positive results we have achieved for the year ended 31 December 2020, and our planned submission of our banking licence application to Bank of Botswana”.

BBSL total balance sheet declined by 12 percent from P4.626 billion for the year ended 31 December 2019 to P4.088 billion as at 31 December 2020. Mortgage loans and advances improved from P3.401 billion to P3.408 billion representing an increase of 1 percent. Total savings and deposits declined by 14 percent from a balance of P2.885 billion as at 31 December 2019 to P2.494 billion as at 31 December 2020. The cost-to-income ratio for the year ended 31 December 2020 was recorded at 112 percent a marginal improvement from 116 percent as at 31 December 2019. Molefe says the ratio is still high relative to financial industry norms. “However, this is as per our expectations as we continue with our corporate strategy to transition our model to operate as a commercial bank,” he says.