Demonstrating its dominance in the commercial banking sector, First National Bank Botswana (FNBB) continues to expand its customer base, driven by a commitment to customer satisfaction. This growth, in turn, boosts both its lending and non-lending income.
Last week, FNBB unveiled its financial results for the six months ending December 31, 2024. Profit before tax grew by 14 percent, surpassing P1 billion, while total income exceeded P2.1 billion. Non-interest income stood at P892 million, and interest income exceeded P1.2 billion.
According to FNBBโs Chief Executive Officer (CEO), Steven Lefentse Bogatsu, this strong performance reflects growth across all business segments, increased transaction volumes, and a significantly reduced cost growth rate. He emphasised that the results demonstrate the bankโs commitment to delivering excellent customer experiences through efficient, convenient, and affordable banking solutions.
โWe invest in technology, capabilities, and people to ensure that our clients’ experience at all points of interaction aligns with their needs and preferences,โ Bogatsu stated.
FNBBโs Expanding Customer Base
Dr. Mbo, the CFO of FNBB, highlighted the exponential growth in both lending and non-lending business, attributing it to the bankโs sharp focus on customer retention and attracting new clients seeking customer-centric and convenient banking services. The bankโs customer base grew by 8 percent to 730,000.
โWe have not increased prices for any product or service in the last six months. The growth weโve seen has been driven by fundamentalsโprimarily transaction volumes,โ Dr. Mbo explained.
He further noted that FNBBโs 730,000 customers hold an average of at least two accounts each, resulting in over 1.4 million active accountsโa record-breaking milestone compared to 1 million accounts four years ago. The sheer volume of transactions from these accounts significantly boosts the bankโs non-lending income.
Transaction Growth and Digital Innovation
During the reporting period, FNBB recorded 15.3 million transactions, marking a 27 percent increase from the 12 million transactions in the previous corresponding period. E-wallet, the bankโs flagship mobile transaction service, saw over 8.7 million transactions, also growing by 27 percent.
Dr. Mbo emphasised that e-wallet services drive financial inclusion among FNBBโs mass-market clients. Additionally, the discontinuation of cheques led to a shift in payment solutions, prompting the launch of eWallet Pro. This product, designed for businesses, facilitated over 27,000 transactions and enabled 357 businesses to streamline their payment processes.
โBeyond digital banking, we remain committed to financial inclusion through initiatives such as CashPlus, SME support programs, and strategic sponsorships that uplift communities and drive sustainable progress,โ Dr. Mbo stated.
Expanding Banking Access with CashPlus
FNBB has significantly expanded its CashPlus agency banking network, allowing customers to deposit and withdraw cash, withdraw from e-wallet, and purchase prepaid airtime and electricity through mobile transactions. During the reporting period, CashPlus experienced remarkable growth, expanding to 1,675 agents and facilitating 4.7 million transactions worth P3.9 billion.
Before CashPlus, many customers had to travel 200 to 500 kilometers to access basic banking services. Today, over 200 villages without ATMs or banks benefit from CashPlus, making banking services more accessible and alleviating the burden of long-distance travel. Since its inception, FNBB has paid P63 million in commissions to its agents.
Lending Business and Financial Commitments
FNBBโs growing customer base has also strengthened its lending business. According to Dr. Mbo, most, if not all, of FNBBโs 730,000 customers require home loans, personal loans, and vehicle financing. Additionally, businesses seek financing for expansion, contributing to a 10 percent growth in FNBBโs loan book, with net loans and advances reaching P19.7 billionโup from P17.9 billion in the previous half-year.
Growth was observed across all banking segments: RMB (Corporate) grew by 18 percent, Commercial Banking by 12 percent, and Retail Banking by 8 percent.
โThe bank remains committed to supporting individuals and businesses in key sectors with appropriate funding solutions, contributing to the economic recovery process,โ Dr. Mbo said.
Deposits also increased, rising by 12 percent to P29.3 billion from P26.3 billion in the previous half-year. This growth signals strong customer confidence in FNBBโs ability to attract and retain deposits.
Sustainable Finance and SME Support
Bogatsu further highlighted FNBBโs commitment to sustainability. During the reporting period, the bank allocated P495 million in sustainable finance facilities, disbursing P97.9 million from current and past financial commitments. As part of its transition to a low-carbon economy, FNBB disbursed P59.1 million in transition finance from a total commitment of P74.4 million.
To support SMEs, FNBB partnered with Debswana under the Citizen Economic Empowerment Programme (CEEP) to provide financing solutions for small businesses.
With a growing customer base, a strong digital banking presence, and ongoing financial commitments to sustainability and SMEs, FNBB continues to cement its position as a leader in Botswanaโs banking sector.ย
