- Fueled by Robust Income Growth
First National Bank Botswana (FNBB) reported a Profit before tax of P879 million for the half-year ended 31 December 2023, marking a robust 28 percent year-on-year growth.
Total income surged by 22 percent over the same period, outpacing the 16 percent growth in expenses.
At the top-line level, Gross Interest income soared by 26 percent, propelled by the lingering impact of rate hikes in the latter part of the previous financial year, coupled with a substantial 12 percent growth in customer advances. Additionally, the bank attributed a noteworthy 24 percent growth in funds deployed into investment securities to the overall growth in gross interest income, driven by increased deposit inflows across current, call, and savings accounts. Despite this growth, the increase in interest expense was contained at 16 percent, primarily due to a shift in deposit mix. Consequently, overall Net Interest Income before impairment charges surged by 30 percent year-on-year.
Net Non-Interest Revenue experienced a more modest 4 percent growth over the period. The bank noted sustained margin volatility and compression on the forex line, while simultaneously observing significant reductions or eliminations of certain service fees. Nonetheless, all other major Non-Interest Revenue lines continued on a double-digit growth trajectory, fueled by escalating transaction volumes, an expanding number of accounts, and growth in the customer base.
