BBS Bank Limited customer deposits sinked by 8.48 percent to P4.178 billion as at 30 June 2026, compared with P4.565 billion as at 31 December 2025.
The decline forms part of the bank’s strategy to reduce its cost of funds by moving away from expensive deposits and improving net interest income.
“This reduction is in line with the bank’s strategy of reducing cost of funds by off-loading expensive deposits to improve net interest income. A key focus during the period was the asset quality, stable deposits and reduced cost of funding. Management continued to lessen reliance on selected high-cost deposits and intensify efforts to grow a more diversified base of current and savings accounts,” management said in the bank’s latest interim financial results for the period ended 30 June 2026.
The bank said the reduction in deposits should be viewed in the context of funding optimisation, with the objective of aligning its funding base more closely with the sustainability and maturity profile of its asset portfolio, supporting margin recovery over time and enhancing its liquidity position.
Total assets declined by 6.91 percent to P5.215 billion as at 30 June 2026, from P5.602 billion at the end of December 2025. According to the bank, the decline was mainly attributable to loan-book attrition and a modest reduction in financial investments.
The movement in the balance sheet, the bank said, was consistent with management’s disciplined approach to balance-sheet deployment amid a challenging operating environment.
Looking ahead, BBS Bank expects the operating environment to remain challenging in the short to medium term. However, the bank sees longer-term opportunities arising from Botswana’s transition towards a more diversified and private-sector-led economy.
Meanwhile, the Group continued investing in capabilities aimed at strengthening its commercial banking foundation, broadening customer access, improving service experience, deepening customer relationships and diversifying revenue streams.
Digitisation and automation initiatives progressed during the period, including interoperability with mobile network operators and wallets, financial inclusion initiatives and the launch of a prepaid card, which expanded the bank’s payments and collections offerings.
These initiatives were complemented by continued enhancements to transactional banking, foreign exchange and business banking services.
BBS Insurance Agency (Pty) Ltd also continued to support the Group’s diversification strategy through its bancassurance offering.
The subsidiary recorded profit after tax of P0.63 million during the period and had net assets of P10.14 million as at 30 June 2026. The Group said it intends to strengthen the subsidiary’s contribution by leveraging synergies across the Group to deliver broader and more relevant financial services to customers.
Looking ahead, BBS Bank expects the operating environment to remain challenging in the short to medium term. However, the bank sees longer-term opportunities arising from Botswana’s transition towards a more diversified and private-sector-led economy.
“The operating environment is expected to remain challenging in the short to medium term. However, Botswana’s transition towards a more diversified and private-sector-led economy creates a longer-term opportunity for institutions to provide relevant payment, collection, savings, credit, transactional and risk-protection solutions.”
“BBS Bank intends to participate in this opportunity through disciplined, risk-informed growth whilst striking the right balance with balance-sheet expansion,” the bank said.
