Gaborone: BancABC Botswana today published its second set of interim financial results since listing on the Botswana Stock Exchange.
The Bank reported a profit after tax of P55.7 million for the period ended 30 June 2020, up 8% from the previous year. One of BancABCs strategic objectives at listing was to prepare for the future by investing in systems and overall operational upgrades that will enhance the customer experience. That decision has begun to bear fruit, with the Bank accelerating its transformation programme and achieving key value milestones.
Managing Director Kgotso Bannalotlhe commented, The first half of the year was impacted by the ongoing subdued macroeconomic environment that was further compounded by the impact of COVID-19. However, the building blocks put in place since listing and strong momentum established at the end of 2019, which continued into the first quarter of 2020 helped mitigate downside pressures experienced in the second quarter. I am pleased that our business has demonstrated resilience, resulting in an acceptable first-half performance and improvement compared to the previous year.
As a responsible corporate citizen, BancABC extended a helping hand to support both its retail and commercial customers who have been financially impacted by the pandemic. Additionally, in April the Bank contributed P100, 000 to the COVID-19 Relief Fund to assist in the fight against the pandemic and the upliftment of the people of Botswana. We understand this is a challenging period for our customers and will continue to support them through various initiatives, said Bannalotlhe.
Total income grew by 9% on the back of a stronger net interest income and a 4% growth in the Banks loan book. During the half-year period, BancABC saw encouraging growth in trading revenue from P2 million in the first half of 2019 to nearly P9 million as a result of the improved team capacity in the global markets business.
Interest expenses were successfully reduced by 15% through efficient technology utilisation and the determined effort to reduce the pricing of term deposits, which was supported by the 0.5% rate cut in April 2020. Although the Banks key income lines reflect strong performance, during the second quarter it began to see a reduction in activity within its branch network as well as the corporate and SME segment due to the lockdowns imposed as containment measures to curb the spread of COVID-19. As a result, the weaker activity damped BancABCs growth prospects for the 2020 financial year.
Currently, BancABC retains a strong capital position and closed the half-year with a healthy capital adequacy ratio of 21%. The Bank also reported strong uptake on its recently launched digital channels, a positive outcome from the second quarter. Ratang Icho Molebatsi, Finance Director said, The last six months have been a challenging period.
The Bank continues to be profitable. However, we expect the curtailed economic activity and disrupted markets to have an impact on full-year financial performance, which may slow down the Banks path to deliver on its timelines for attaining returns on investments made thus far. Due to the current market conditions, we continue to closely monitor our operating expenses and costs within all business segments in order to have the appropriate liquidity for future investments.
This year, BancABC celebrates its 10th anniversary. A decade ago, BancABC Botswana opened its first branch in Gaborone, The Square Branch. Since then, the Bank has expanded its footprint, offering over 60,000 people in Botswana accessible, relevant banking solutions.
The Bank rolled out an infrastructure overhaul, introduced the Commercial Banking online platform, BancOnline and recently launched the SaruMoney banking app in order to better serve its customer base as part of a P100m investment made in the last two years to improve its value proposition.
Over the years, BancABC has experienced both celebratory and challenging moments, but what remains intact is that BancABC continues to offer simple, accessible, customer-centric financial solutions while building profitable, lasting customer relationships.
There is no doubt that the next six months will be challenging given the economic backdrop and further impact from COVID-19. However, we remain focused on all elements of our strategy, whilst ensuring that all our efforts as a business are aligned to deliver value for shareholders and other stakeholders in the medium-term, concluded Bannalotlhe.
About BancABC BancABC Botswana is a part of the Atlas Mara Group. Our vision is to be the trusted local bank in Botswana, offering world-class solutions and building profitable, lifelong customer relationships through the provision of a wide range of innovative financial products and services to benefit all stakeholders.
BancABC Botswana was listed on the Botswana Stock Exchange Limited (BSE) in December 2018. ABC Holdings Limited (www.bancabc.com), wholly-owned by Atlas Mara, operates BancABC in Botswana, Mozambique, Tanzania, Zambia and Zimbabwe.
About Atlas Mara
Atlas Mara (https://www.atlasmara.com) was listed on the main market of the London Stock Exchange in December 2013. Atlas Mara’s strategy is to create Sub-Saharan Africa’s premier financial services institution through a combination of its experience, expertise and access to capital, liquidity and funding.
Its goals are to combine the best of global institutional knowledge with extensive local insights and to support economic growth and financial inclusion in the countries in which it operates.
This past weekend, Botswanaâs ambassador of Sister in law movement hosted 120 attendants for the I am Lady Justice Workshop. The workshop is said to empower women through legal education.
The topics that were discussed during the workshop included; Marriage, divorce, child maintenance, wills, employment law, cyber law and financial literacy.
Sister in law is a movement from South Africa that was founded in 2018 by attorney Tebello Motshwane.
Giving a background of how the movement started in Botswana, Tebele said she was inspired by her shared vision with the founder of sister in law to empower women through legal education.
âI came to learn about sister in law through social media. I flew down to Johannesburg to attend the first sister in law workshop in March 2019, met with Tebello, the founder and gelled. The rest is history. I am now the Botswana ambassador of sister in lawâ Tebele said.
ABOUT SISTER IN LAW
When giving her remarks, founder of the sister in law Tebello Motshwane revealed that her motherâs divorce inspired her to start the movement.
âSister in law started as a Blog and was inspired by my own mother who went through a divorce so I became very interested in studying the law because my grandfather always advised me to study law so I can understand why certain things happened when going through a divorce.â
She said after studying law she started the platform as a way to ensure that other women will never find themselves in the position that her mother was left in âdivorced with two minor kids in Johannesburg not knowing where to start.
âSome of the information is crucial so you would wonder why women are being disempowered because they cannot afford a legal consultation. So I decided to make this information available online so women can be empowered.â
Motshwane further alluded that the project is a personal passion that she took on to herself to say that the next women who could not afford an attorney would at least have a direction a guide to start.
âWomen are already there browsing through make-up, jokes, tick tock so you may as well be empowered as well, so thatâs how sister in law came about.â
First National Bank Botswana (FNBB) is pleased to announce that the highly anticipated First Wine Show is back, and wine enthusiasts are in for a memorable experience this weekend from Friday 26th May 2023 to Saturday 27th May 2023 at Molapo Piazza. The annual event brings together wine enthusiasts to indulge in a world of flavours and connect with fellow connoisseurs and experts in a great ambiance. âWe are excited to host and interact with wine lovers this weekend and promote the lifestyle brand that FNBB is. This event gives us an opportunity to mingle with our stakeholders in a relaxed atmosphere of great wine coupled with the best culinary experience,â said FNBB Director of Retail, Ms Monkgogi Mogorosi. She also mentioned that the event promises to be a remarkable fusion of refined tastes, cultural appreciation, and captivating interactions and provide attendees with a great experience, highlighting that the Bank has partnered with Tamasa Trading to make this possible. The two-day event will start with an exclusive invite only engagement for Premier and Private clients which affords the Bank an opportunity to unpack its value proposition while promoting networking amongst attendees. This will be followed by the Saturday engagement open to wine lovers by purchasing tickets for only P 250. There will be 100 different types of wines available from 13 privately owned wineries ensuring the quality and exclusivity of the wines. Patrons will be spoilt for choice with multiple internationally awarded wines and South African award-winning wines available for tasting. All the wines available for tasting will also be for sale at the event at special prices. The wine show is expected to attract a large crowd as it is one of the most sought out lifestyle events in the calendar.
In continued efforts to empower young students across Botswana through the Digital Schools Programme, Orange Botswana through the Orange Foundation don handed over digital equipment worth P53, 731.50 to Thankane Primary School, located in Jwaneng.
We are excited to be in Jwaneng and to see yet another milestone for impact being delivered. This relationship began with a view towards working together inclusively and sustainably – give children greater access to quality education. This is, after all, a key goal within our Vision 2036 and even of the UN Sustainable Development Goals. It is also core to our values and beliefs system at Orange Botswana. Our Digital Schools initiative is a true testament to the Orange Botswana Foundations unwavering commitment, loyalty, and support towards the youth of Botswana, said Benson Lenong from Orange Botswana.
Donated equipment includes but is not limited to:
50 tablets loaded with local syllabus content
1 Video projector
1 Raspberry servers
1 JBL Speaker
1 Case (to contain the package)
The Orange Botswana Foundation, in partnership with the Government of the Republic Botswana, embarked on a quest to empower and educate the youth of the country through giving them better access to technology through Governments Education & Training Sector Strategic Plan (ETSSP). Orange Botswana signed a Memorandum of Understanding (MoU) with the Ministry of Basic Education and Ministry of Local Government and Rural Development in 2017, to kickstart a pilot of the Digital Schools Programme in 2018. The programme has seen 16,225 students benefiting from deployed schools, with 102 teachers trained in using digital kits as a mode of teaching. Thankane Primary is the 52nd school being engaged as part of the nationwide initiative.
The Orange Digital Schools Project is all about utilisation and integration of ICTs in learning, while at the same time addressing issues of digital inclusion and digital literacy. The Programme aims to bridge the digital gap by leveraging technology to improve access to education in primary schools such as Thankane.
Thankane Primary School was established in 1989 with 324 learners enrolled from Jwaneng and surrounding communities. The school continues to perform well in the Primary School Leaving Examinations (PSLE), and consistently works to ensure children learn vital life lessons both inside and outside the classroom. As one of the highest-ranked academic schools in the South region, Thankane Primary boasts excellent academics, leadership, sports, and culture.