First National Bank Botswana (FNB Botswana) has announced its audited financial results for the year ended 30 June 2024, delivering a solid performance marked by growth across its core business segments. The Bank’s focus on people, innovation, operational efficiency, and customer-centricity has driven a significant 25% year-on-year increase in profit before tax compared to the last financial period. This has been achieved despite challenging macroeconomic conditions, reaffirming FNB Botswana’s staunchness to its strategic objectives and continued leadership in Botswana’s financial sector.
This growth was driven by strong advancements in both net interest income and non-interest revenue. Net Interest Income grew 36%, supported by business momentum, effective balance sheet management and favorable lending conditions, while non-interest revenue increased by 7%, reflecting growing transaction volumes and enhanced service offerings.
Dr Mbako Mbo, Chief Financial Officer, remarked “Our financial results for the year highlight our disciplined approach to capital allocation and cost control. The growth in net interest income stresses our focus on maintaining a well-balanced portfolio, while continued investments in technology, employee development, and customer experience are vital for our long-term sustainability. The 16% increase in operating expenses reflects these strategic investments, particularly in our digital transformation journey.
FNB Botswana’s cost-to-income ratio improved 50 basis points to 49.4%, reflecting ongoing operational efficiency, while customer deposits surged by 29% to P30.02 billion, buoyed by initiatives aimed at expanding the customer base and deposit inflows. The Bank’s Return on Equity stood at an impressive 35.5%, underlining our effective capital management and profitability.
Chief Executive Officer, Steven Lefentse Bogatsu, noted that “FNB Botswana’s strong financial performance is an indicator of the fortitude and tenacity of our business model, underpinned by our commitment to innovation and customer service. Despite a challenging economic environment, we continued to grow by focusing on digital transformation, financial inclusion, and sustainability. Our results reflect the strategic alignment of our operations with our long-term vision, and we are well-positioned to continue delivering value to our stakeholders and contributing to Botswana’s economic development.”
He also emphasised that the Bank’s focus was to ensure that the Bank provides a simplified experience for customers at every touch point.
FNB Botswana’s Impact Plan 2024 remains at the heart of its business strategy, focusing on delivering shared value for both the Bank and the communities it serves. Through the FNB Foundation, 1% of the bank’s profits are allocated to support education, job creation, skills development, and community welfare initiatives across Botswana.
Additionally, P610 million was disbursed in green loans during the year, furthering Botswana’s renewable energy sector and supporting the country’s sustainability goals. FNB Botswana’s CashPlus service saw a 43% increase in coverage, with 1,481 agents now reaching remote areas, making banking more accessible to underserved populations. The Bank also prioritises local procurement and empowering Small Medium Enterprises, aiming to create sustainable benefits for communities and stakeholders. During the reporting period, 84% of procurement spend was paid to local suppliers.
Looking ahead, FNB Botswana’s strategic focus for the coming year remains clear and resolute. The Bank will continue to lead in digital transformation, elevate customer experiences, and drive forward sustainability initiatives. With a commitment to promote a high-performance culture, the Bank continues to invest in targeted programs that prioritise employee growth and well-being.
FNB Botswana remains firmly committed to empowering the communities they serve, strengthening Botswana’s economic buoyancy, and enabling our customers to succeed. We are not just poised for future growth, we are determined to drive it, shaping a prosperous future for Botswana and its people, ensuring progress for generations to come.
