Absa Bank Botswana has today announced its financial results for the first half of 2025, reflecting resilience and continued delivery against its strategy in the face of economic headwinds.
The Bank’s performance was weighed down by softer diamond sales, inflationary pressures, and subdued household and business confidence. However, revenue diversification, growth in customer activity, and disciplined risk management helped mitigate these pressures.
“Despite a challenging first half, our business remains resilient and well capitalised. We continue to deliver value for our customers and stakeholders by broadening income streams, driving digital innovation, investing in our people, and making a positive impact in the communities we serve,” said Keabetswe Pheko-Moshagane, Managing Director of Absa Bank Botswana.
“Our balance sheet remains strong, with loans up 6% and deposits up 3% year-on-year, supported by solid liquidity and capital ratios well above regulatory requirements. While costs increased due to investments in people, systems, and compliance, we view these as necessary to build a stronger, more efficient Bank for the future,” added Kudakwashe Mukushi, Finance Director of Absa Bank Botswana.
Business performance
Retail and Business Banking delivered strong growth, with profit before tax rising 37% on the back of robust lending activity, higher fee income, and deposit growth of nearly 18%. Corporate and Investment Banking reported profit before tax growth of 13%, supported by stable funding and disciplined cost management.
Strategic and social impact
Absa Bank Botswana retained its Top Employer certification for the fourth consecutive year, reaffirming its position as an employer of choice. The Bank also advanced financial inclusion initiatives onboarded new informal sector clients through Mobi Tap and Remmogo Account, and invested in communities through programmes such as ReadytoWork, SME capacity building, and disaster relief support following February 2025 floods.
Outlook
Botswana’s economy is projected to contract by 0.2% in 2025, a softer downturn than the 3% fall in 2024, signalling early signs of recovery. Inflation is expected to average 2.7%, while trade headwinds persist following the imposition of a 15% U.S. tariff on exports.
“Our strategic focus remains unchanged. We will continue to diversify revenue, pursue growth opportunities aligned with Botswana’s national priorities, and equip our clients to seize opportunities under the ESG agenda. As we mark our 75th anniversary in 2025, we remain committed to working alongside Government, our customers, and communities to build resilience and long-term prosperity,” concluded Pheko-Moshagane.
