Botswana’s commercial banking sector continued its growth trajectory in 2024, with total assets rising by 7.7 percent from P133.6 billion in December 2023 to P143.9 billion a year later, according to the Bank of Botswana’s latest annual report.
The increase was largely driven by a 6.5 percent rise in loans and advances, which climbed from P81.8 billion to P87.1 billion during the same period. Deposits remained the primary source of funding for banks, totaling P114.3 billion in December 2024, up from P110.3 billion a year earlier. These deposits included P107.3 billion in customer deposits and P7 billion in bank deposits.
The report noted that the industry’s average intermediation ratio stood at 81.2 percent in December 2024, slightly above the upper bound of the recommended prudential range of 50–80 percent. In December 2023, the ratio was 78.6 percent.
Overall, the central bank assessed the commercial banking industry as profitable, well-capitalized, and compliant with regulatory and prudential standards.
In the statutory banking segment, total assets for the National Development Bank (NDB) and Botswana Savings Bank (BSB) grew by 44.6 percent to P6.7 billion in December 2024, up from P4.6 billion the previous year. The growth was driven by a 65.6 percent increase in gross loans and advances, which rose from P3.5 billion to P5.8 billion.
Asset quality at statutory banks improved, as non-performing loans (NPLs) dropped by 5.6 percent from P349.8 million in December 2023 to P330.1 million a year later. The decline was attributed to a 16.6 percent fall in NDB’s NPLs — from P259.8 million to P216.7 million — following the write-off of irrecoverable debts. The NPL ratio also dropped to 5.7 percent from 10 percent during the period under review.
BSB remained liquid throughout the year, posting a liquidity asset ratio (LAR) of 15.5 percent, comfortably above the 10 percent prudential threshold. The bank’s profit surged by 229.5 percent to P56.6 million in December 2024, up from P17.2 million a year earlier. This performance was credited to a revitalized sales strategy, including the expansion of its direct sales-agency network.
On the central bank’s own performance, Governor Cornelius Dekop reported a total comprehensive income of P5.8 billion for the year ended December 2024, compared to P8 billion in 2023. The decline was due to reduced unrealized fair-value gains and foreign currency earnings, reflecting volatility in global markets triggered by geopolitical tensions and inflationary pressures.
As a result, Botswana’s foreign exchange reserves fell by 24.5 percent, from P63.7 billion in December 2023 to P48.1 billion in 2024. In foreign currency terms, reserves declined from USD4.8 billion to USD3.5 billion and from SDR3.5 billion to SDR2.7 billion over the same period.
