Tuesday, February 7, 2023
  • About
  • Advertise
  • Privacy Policy
  • Cookie Policy
  • Contact
  • Subscribe
  • E-edition
  • Login
  • Register
  • Home
  • News
  • Economy
  • Columns
  • Companies & Markets
  • In Business With
  • Lifestyle
    • Motoring
  • Sports
    Limited Game Time Compels Seakanyeng to Quit UAE-Based Outfit 

    Limited Game Time Compels Seakanyeng to Quit UAE-Based Outfit 

    Debswana sponsors BFA’s National First Division League with P3.9m 

    Debswana sponsors BFA’s National First Division League with P3.9m 

    Ditlhokwe Tipped to Excel at Kaizer Chiefs

    Ditlhokwe Tipped to Excel at Kaizer Chiefs

    BCF Aims to Resuscitate Chess this Year

    BCF Aims to Resuscitate Chess this Year

    Tebogo’s Move to US on Hold

    “Don’t Panic,” Tebogo is advised as He Transits to Senior Level

    NSAs decry Absence of School Sports 

    NSAs decry Absence of School Sports 

    Trending Tags

    • Subscribe
    No Result
    View All Result
    • Home
    • News
    • Economy
    • Columns
    • Companies & Markets
    • In Business With
    • Lifestyle
      • Motoring
    • Sports
      Limited Game Time Compels Seakanyeng to Quit UAE-Based Outfit 

      Limited Game Time Compels Seakanyeng to Quit UAE-Based Outfit 

      Debswana sponsors BFA’s National First Division League with P3.9m 

      Debswana sponsors BFA’s National First Division League with P3.9m 

      Ditlhokwe Tipped to Excel at Kaizer Chiefs

      Ditlhokwe Tipped to Excel at Kaizer Chiefs

      BCF Aims to Resuscitate Chess this Year

      BCF Aims to Resuscitate Chess this Year

      Tebogo’s Move to US on Hold

      “Don’t Panic,” Tebogo is advised as He Transits to Senior Level

      NSAs decry Absence of School Sports 

      NSAs decry Absence of School Sports 

      Trending Tags

      • Subscribe
      No Result
      View All Result
      The Business Weekly & Review
      No Result
      View All Result
      Home Companies & Markets

      FNBB RoE returns to target range after P1bn special dividend

      First National Bank of Botswana’s (FNBB) return on equity (ROE) has returned between the 24 percent - 25 percent band, reflecting improved profit after taxes as well as reduced capital base following the June 2021 special dividend

      mm by Kitso Dickson
      March 9, 2022
      in Companies & Markets
      0
      FNBB RoE returns to target range after P1bn special dividend

      Luke Woodford - Chief Financial Officer

      0
      SHARES
      92
      VIEWS
      Share on FacebookShare on Twitter
      • But investment securities decline by 26% following decrease in investible capital

      The bank reported ROE of 24.7 percent during the six months ended 31 December compared to 17.9 percent in 2020.

      The bank says ROE increased due to the previously conservative level of capital held in the prior period as well as its 38 percent increase in profit after tax to P450.4 million Faced with significant uncertainty during the initial stages of the pandemic, the directors said they opted at the time for a prudent approach to balancing an efficient capital position with the need to retain sufficient capital for unexpected fluctuations in earnings volatility.

      This resulted in a subdued dividend being declared for this prior period. At the close of the June 2021 financial year, and by then equipped with greater understanding of the probable economic impact of the pandemic, FNBB then rebalanced its capital portfolio by way of a special dividend.

      “The latter took full account of the outlook on risk weighted asset growth, expected earnings volatility levels, and capital efficiency,” said the bank’s CEO Steven Bogatsu, noting that the bank’s performance over the six-month period ended 31 December 2021 reflects a recovery to the target range of expected levels of return. FNBB paid P1,246,413,000 to shareholders for the year ended 30 June 2021 after declaring 49 thebe dividend per share made up of the 9 thebe final dividend per share and the special dividend of 40 thebe per share.

      “The bank’s decision was informed by the bank’s capital management strategy which aims to ensure an optimal level and composition of capital and effective allocation of financial resources including capital and risk capacity, so as to achieve a sound return on equity and ensure a sustainable dividend distribution to shareholders,” FNBB said at the time.

      However, during this reporting period this resulted in the bank’s investment securities declining by 26 percent following this decrease in investible capital after special dividends. On an average base, the bank said they decline by an average of 4 percent.

      Nonetheless, FNBB says it maintains sound capital ratios so as to maintain confidence in the solvency and the quality of its capital during both calm and turbulent periods in the economy and in financial markets. For the six months ended 31 December 2021, FNBB said it continued to operate above both the internal and regulatory minimum capital adequacy ratios. A dividend of 10 thebe per share has been declared for the six months ended 31 December 2021.

      Tags: First National Bank of Botswana’s (FNBB)return on equity (ROE)Steven Bogatsu

      Navigation

      • Home
      • News
      • Economy
      • Columns
      • Companies & Markets
      • In Business With
      • Lifestyle
        • Motoring
      • Sports
      • Subscribe

      Recent News

      • February 3rd Edition
      • Import Ban on Veges Could be Lifted
      • The Net Tightens Around Van Niekerk
      • Fiercely Schiaparelli: All that Glitters and Roars 
      • Bassett’s Queen is a Class Act 

      Site

      • About
      • Advertise
      • Privacy Policy
      • Cookie Policy
      • Contact
      • Subscribe
      • E-edition

      © 2021 The Business Weekly & Review. All Rights Reserved.

      No Result
      View All Result
      • Home
      • News
      • Economy
      • Columns
      • Companies & Markets
      • In Business With
      • Lifestyle
        • Motoring
      • Sports
      • Subscribe

      © 2021 The Business Weekly & Review. All Rights Reserved.

      Welcome Back!

      Login to your account below

      Forgotten Password? Sign Up

      Create New Account!

      Fill the forms below to register

      All fields are required. Log In

      Retrieve your password

      Please enter your username or email address to reset your password.

      Log In
      This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
      Are you sure want to unlock this post?
      Unlock left : 0
      Are you sure want to cancel subscription?