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BANCABC Reports Resilient Half-Year Results Amid Challenging Environment

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 BancABC’s 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 Bank’s 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 Bank’s 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 BancABC’s 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 Bank’s 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.

For more information, please contact:

Polelo Kilner
Country Head of Marketing and Communications
BancABC Botswana
Tel: +267 3674321
Mobile: +267 72800416
Email: pkilner@bancabc.com
Web: www.bancabc.com

For more information, visit http://www.bancabc.co.bw

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.

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Corporate

BOCRA Hosts Virtual Workshop on Waste from Electrical and Electronic Equipment (WEEE)

3rd June 2021

On 26 – 29 May 2021, BOCRA, in collaboration with the International Telecommunication Union (ITU) and United Nations University, hosted a virtual workshop on Waste from Electrical and Electronic Equipment (WEEE).

Bringing together Statistics Botswana, Botswana Unified Revenue Service (BURS) and the Department of Waste Management and Pollution Control, the objective of the workshop was to equip Botswana with tools to record incoming electrical and electronic goods to better estimate the quantities of electronic waste that will be produced when these products reach their end-of-life cycle and become e-waste. Botswana, currently, does not have a legislation to address to the issue of e-waste.

Further notes

E-waste is a health and environmental hazard as products containing toxic additives or hazardous substances are mostly dumped or incinerated rather than being collected for treatment and re-use of recoverable substances. This is especially so among most of the developing countries.

E-waste includes discarded household or business items that have electrical and electronic circuitry components with a power or battery supply such as mobile phones, computers, printers, televisions irons, refrigerators, kettles etc.

The Global E-Waste Monitor 2020 report estimates that 53.6 million metric (Mt) tonnes was generated in 2019, making e-waste the fastest growing domestic waste stream. The report also indicates that only 17.4 percent of the 2019 e-waste was collected and recycled.

The ITU estimates that e-waste quantities have been rising rapidly in the past 5 years due to several factor such as rapid growth of the digital society, higher consumer demand for digital devices, short life cycles and few options for repair.

According to the ITU, e-waste is a challenge and an opportunity. The ITU calls on member states to develop legislations and strong partnerships with industry and businesses to protect human health and the environment from the consequences of inadequate handling of our discarded devices.

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Corporate

Modipane brickmaker gets boost from PPC Botswana

20th May 2021
modipane

Modipane based brickmaking company Katlego Bricks received a brand new stock brick machine and mentorship from leading cement producer PPC Botswana this past Wednesday.

“Community development is important because it provides the foundation a society builds off of to improve the lives of its citizens. It creates strong, diverse communities that can attract and keep talent, start and grow businesses, and overcome issues that arise. Katlego Bricks has been a loyal PPC Cement consumer in the Mmodipane area.

What is more impressive is that this brick yard is led and managed by a lady who understands the craft of brick making so much,” said PPC Botswana Head of Business Unit Tuelo Bolthole.

The arrival of the new brick-making machine is expected to increase productivity at the Modipane based Katlego Bricks which has been using 25 cement bags in a day and will be expected to use at least 40 bags in a day due to the new machine.

During the brick-making machine handover, Katlego Bricks and Modipane residents were also equipped with highly advanced brickmaking skills by PPC Botswana experts. Through this highly advanced mentorship, the trainees are also expected to start producing high-quality and competitive bricks.

“We have brought highly skilled experts that will be drilling you with the latest skills of molding bricks, these are experts that have worked on some of the best projects in Botswana. Remember PPC Botswana cement has also been used to build some of the iconic structures we have in Botswana such as the iTowers, Dikgatlhong dam, and the Obed Itani Chilume Stadium in Francistown. I am giving these examples to show that PPC Botswana does quality work and after this workshop, all the brickmakers involved will be producing high-quality work too,” Botlhole said.

Katlego bricks founder Patricia Katlego Mokgwa was in a jovial mood after receiving the brickmaking machine. She believes that the mentorship and machine will improve the business operations and will improve productivity in her business.

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Corporate

BOCRA donates COVID19 essentials to Primary schools in Kweneng District

26th April 2021

Botswana Communications Regulatory Authority (BOCRA) through its Corporate Social Investment initiative has donated over Five Thousand Eight Hundred (5800) washable, reversible 3-ply face masks and related COVID-19 essentials to Motswakhumo Junior Secondary School in Lentsweletau, Kopong Junior Secondary School and Letsholo Primary schools in Kopong, in the Kweneng district. The respective schools received two (2) face masks for each pupil, teacher and the rest of the staff; 25 litres of sanitiser and dispensers, all at an estimated cost of One Hundred and Eighty Nine Thousand Pula (P189,000).

Ms Tsaone Ruth Thebe, BOCRA Board Chairperson, officiated at each of the handover sessions held at the respective schools. Representing the Mmopane/Lentsweletau Constituency Office was Mr Masego Thantshane, Administration officer. Mr Puso Gaotlhobogwe, District Commissioner (Molaodi) also graced the three occasions.

BOCRA recognises its role as a corporate citizen and believes that the COVID19 pandemic calls for responsive and relevant inputs to the immediate needs of the community.

In receiving the PPEs, school authorities expressed gratitude to BOCRA, noting the dire need for PPEs in their schools. They all echoed that the gesture would go a long way in filing the gaps.

-ENDS  –

For more information, please contact:

Mr Aaron Nyelesi

Director, Broadcasting and Corporate Communications

nyelesi@bocra.org.bw

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