Access Bank Botswana credits its increased profit before tax to the introduction of innovative products over the years and a focused effort to explore new revenue streams.
According to the group’s financial statement, profit before tax shot up to P60 million in the first half of the 2024 financial year from P18 million in the previous corresponding period.
The bank attributed its success to increased customer adoption of its products and services as Access Bank Plc, the parent company of Access Bank Botswana, reduced its ownership from 78.15 percent to 70 percent.
Sheperd Aisam, Access Bank Botswana’s Managing Director said strategic investments in technology, infrastructure, and people are driving the bank’s transformation.
“Our efforts are beginning to bear fruit, with increased customer deposits, strong non-interest income, and a clear path towards further growth,” Aisam said.
The bank’s total assets have jumped by 20 percent to reach P11.1 billion, while customer deposits surged by 25 percent to P8.99 billion. The bank said the gains come at a time when the overall credit appetite in the market has been low, but acknowledged that it has found other avenues to drive revenue.
Non-interest income, a key driver of growth, surged by 69 percent to P136 million from P85 million in the first half of 2023. Aisam attributes this increase to higher fees from digital banking channels and commissions, demonstrating the success of the bank’s digital innovation strategy. Despite a reduction in loan advances from P6.62 billion to P5.95 billion, the bank’s overall financial position remains robust, supported by customer growth and a broadening product portfolio.
The MD said total expenses stood at four percent higher year-on-year, adding that the increase was necessary to support the bank’s expansion which is led by investments in people, technology and infrastructure.
“These were necessary to ensure our strategic milestones are achieved.”
The Managing Director noted that the bank’s operating costs remain aligned with inflationary pressures from 2023, albeit at a slower rate. Additionally, the bank reported that expenses denominated in U.S. dollars have increased due to the weakening of the Botswana Pula against the U.S. dollar.
The bank’s capital adequacy ratio has increased slightly to 21.3 percent, well above the required 12.5 percent. According to Aisam, this robust capital position equips them to efficiently execute their strategies and prepare for continued growth, while also navigating any potential economic uncertainties. He emphasised that the team remains focused on rolling out new products and expanding their digital footprint, assuring that the best is yet to come for Access Bank’s operations in Botswana.
The bank says even though it introduces new products and services it maintains its customer-centric approach and leverages its digital capabilities, with banking solutions that are aimed at growing its customer base and maximised shareholder investment.
