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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

GATA LE RONA Comes To Completion

6th September 2021
BPOPF

The Botswana Public Officers Fund (BPOPF) is now mandated by law to have pension fund administration and investment management conducted by independent licensed entities.

This means that these functions must be fully outsourced. This became necessary due to the enacting by Parliament of the Retirement Funds Act in 2014 (RFA Act) and the promulgation of subsidiary legislation governing the RFA Act by the Non-Bank Financial Institutions Regulatory Authority (NBIFIRA).

Therefore, the outsourcing project name coded Gata Le Rona journey comes to completion as the BPOPF hands over fund administration outsourcing services to NMG Administrators Botswana. NMG Administrators Botswana will be collecting contributions on behalf of the BPOPF, maintain all Member records, payment of claims, permit any excess cash to the BPOPF for investment and manage pensioner payroll. The BPOPF remains committed to building brighter futures together.

Following a significant 19-month long transition journey, the Botswana Public Officers Pension Fund (BPOPF), officially handed over fund administration services to NMG Administrators Botswana, as the outsourcing project comes to fruition. The project, which began in October 2019, commenced following amendments to the Retirement Funds Act (Section 15 (i).

Effective 2 June 2021, NMG Administrators Botswana will collect contributions on behalf of the BPOPF, maintain all Member records, payment of claims, permit any excess cash to the BPOPF for investment and manage pensioner payroll.

Noted CEO of the BPOPF, Mr. Moemedi Malindah, “This is a large-scale project and one we are proud to say was managed with the utmost diligence, with our Members at heart in all that we did and indeed continue to do. The BPOPF continues to engage all key stakeholders to ensure this transition is a smooth one.

Members can be rest assured that their pensions and benefits are not affected as NMG Administrators Botswana takes over the day-to-day fund administration tasks. This is a bright new chapter and we are more than ready and confident in the future.”

NMG Administrators Botswana is a joint venture between Lecha Administration (a company owned 100% by the BPOPF) and NMG South Africa. Lecha Administration owns 51% shares and NMG South Africa owns 49% shares in NMG Administrators Botswana.

“Re a leboga, Batswana, for your patience and support; especially our valued Members. We remain committed to investing in your golden years and building a brighter future together,” concluded Malindah.

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BSB Expands towards financial inclusion

6th September 2021

“As part of the bank’s quest to fulfil its financial inclusion mandate, Botswana Savings Bank (BSB) has focused more on expanding its footprint across the country to take its services to the communities it serves during the 2020 fiscal period” said Nixon Marumoloa, the Bank’s Chief Executive Officer (CEO).

According to the CEO, BSB’s focus in 2020 was expansion, visibility, continued mobilization and delivery of its inclusive finance agenda to provide simple, appropriate and accessible financial solutions to the under-served in a sustainable manner.

“In order to achieve our goal, the bank had to make compromises on some of our short-term goals in order to fulfil long term solutions to our customers. In advancing the bank’s financial inclusion agenda, we are proud to announce that BSB launched four (4) Automated Teller Machines (ATMs) in Gaborone, Mogoditshane, Old Naledi and Bokaa. This is in partial fulfillment of our strategy and commitment to our communities to ensure that our products and services are accessible to all. It gives us pride to be the sole service provider in these areas where financial services were previously non- existent,” Marumoloa said.

Botswana Savings Bank is currently approaching the final year of its strategic period of 2016-2021.  Marumoloa said BSB is now more determined to ensure that the Bank totally transforms to provide life events, cradle to grave products through digitised service channels for all income groups in Botswana and beyond.

Improved products will be launched into the market during 2021, moving on to 2022. The highlight product for the new financial year, according to the CEO is the Pensioners Loan facility.

“This product will ensure that the marginalised senior citizens continue to have financial freedom and access to financial services during their years of retirement,” he noted.

Further, the BSB CEO added that it is in the final year of the strategic period that the digitisation and integration programme will be executed and partially completed, with some elements overlapping into the following financial year. He said Point of Sales Machines will be deployed across the bank’s network to enable the phasing out of passbooks which will be replaced with Visa enabled BSB Debit Cards.

“As other banks close branches, we will open new branches and service points across the country to ensure we live up to our mandate of financial inclusion,” he stated.

The History of BSB stretches back more than 20 years. The bank has since experienced transformational growth, moving from a traditional bank to a 21st century financial institution with independent branches in Gaborone, Francistown, Serowe, Mahalapye and Hukuntsi.

The BSB Chairman Mr Kealeboga Molelowatladi added that BSB continues to increase its physical proximity to its customers as part of its financial inclusion mandate which has been embedded into the bank’s corporate strategy.

“Ultimately, our goal is to increase our footprint and brand visibility as we provide affordable savings solutions across the country,” he expanded.  Moreover, Mr Molelowatladi highlighted that The Bank is determined to ensure that it delivers on it’s five-year strategic plan by end of 2021.  He noted that the bank has embarked on various long-term projects that are currently work in progress.

These projects are part of the bank’s growth strategy with a focus to increase our footprint in Botswana.

Mr Molelowatladi stated that, this includes the opening of new branches across the country to ensure that BSB’s services are accessible to all Batswana.

However, he revealed that a major drawback in implementing the bank’s strategy was lack of integration of systems. As a solution however, he affirmed that the Bank is working on implementing new systems to improve the bank’s efficiency and effectiveness.

“We are looking forward to the phasing out of the traditional passbooks as we introduce digital channels and automate our processes for customer convenience. We remain confident that despite the rapid changes in our economic environment, our strategic priorities will enable us to drive sustainable growth for our business,’ he said.

During the same period, he also revealed that the bank identified a superior banking system that will be implemented and rolled out by 2021. He said, this banking system shall be the backbone in the bank’s digital transformation.  In his views, it is through this system that the bank will optimize its internal processes to provide a sound value proposition to Batswana and improve profitability of the bank by reducing the cost to income ratio.

The Bank continues to be profitable, with the year ended 31 March 2021 returning a modest profit after tax of P5.2 million due to pressure on both revenue and rising costs. Although the result could be easily read as a regression on the results of the year before, a simple reduction of the government grant received in the previous year paints a picture of a bank that is set to realize an improvement in its operating margins when measured by a significant growth in advances. The bank’s balance sheet continues to grow year on year.

As a result of the COVID-19 pandemic, hinderances have become quite the norm but the Bank has managed to persevere and remain true to its strategic objectives. This reflects the undeniable resilience and the progressive leadership that is at the helm of the Bank. The expansion plans that are underway are a harbinger of the growth and success that BSB is on the verge of achieving.

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Botswana Post introduces the -VIRTUAL POST BOX (VPB)

6th September 2021

As part of its promise to making service delivery convenient for its customers, BotswanaPost introduces its newest offering geared at enhancing the traditional post box as we know it.

This is also in line with our concerted efforts of making a significant impact in the digitization of doing business in Botswana as envisioned by our shareholder, the government of Botswana. In fulfilling our mandate to provide universal postal access to all, Virtual Post Box is a merging of our core mandate – provision of postal services in an efficient and cost effective manner.

The Virtual Post Box affords customers to register their mobile phone numbers to be used as their designated Post Box number to receive mail and related services from BotswanaPost. The customer’s mobile number will be linked to a post office of their choice for mail delivery. Furthermore, the customer also has a choice to opt for home/office delivery.

This is a departure from the commonly known traditional postal box characterized by the uniquely addressable, lockable box located on the premises of a Post Office station. Post Office boxes are rented by individuals or by businesses on an annual basis and the cost of rent vary depending on the type of box (Private, Individual etc.)

This offering is of value especially to Small, medium and Micro Enterprises (SMMEs) as it provides them with the capacity to operate as one stop shops. The Virtual Post Box places clients at the forefront of technology, resulting in reliability of unmatched customer service.

The unique development of the Virtual Post Box fits into our strategy of bringing services to our customers with ease.  The service comes in at a time when the world is still dealing with the COVID – 19 pandemic and ensuring we operate within the prescribed protocol. This has necessitated transformation into the digital space.”  Chief Commercial Officer – Clifford Lekoko

“The virtual Post Box is in line with our Mission of “Providing affordable convenience through high quality profitable postal and diversified products and services” where we leverage on technology as a major business sustainability anchor in the face of diminishing traditional postal business. This will facilitate and enable E-Commerce for the diverse market we serve as it gives the customer power in terms of cost and tracking of one’s mail.”- General Manager Courier & Mail Business – Tumelo Mereyotlhe.

What’s key to note about this new service ;

  • Gives customers a smart and convenient way to manage their postal mail remotely
  • Its more affordable compared to the normal postal box
  • Saves customers time to visit the postal branch due to mail incoming notifications
  • Gives Customers an opportunity to re – direct mail to their current location
  • Mail is securely monitored via tracking system and safely stored in the post office for collection
  • Offers privacy of mail as the owner will be allowed to collect unless he or she has directed someone to collect on their behalf
  • The online portal gives a history of all customer mail acting as a mail management system making it possible to monitor the customers mail volumes
  • Anyone above the age of 18 can open a virtual post box
  • Annual Fee; BWP 200.00 Mass Market & BWP 2000.00 Business
  • Penalty Fee – BWP 5.00 per day for 30 Days (Cumulative) only
  • Storage Fee – BWP 5 .00 per day for 30 Days (Cumulative) only
  • Re – direction Fee – BWP 30 .00
  • Home / Office delivery – Per EMS tariff

For details customers can reach us on our customer line at +267 39 11 743, WhatsApp #    77537517 or send an email to enquiries@botswanapost.co.bw   to find out more about Botswana Post’s virtual post box.

End//

Media enquiries to be routed to

Communications Unit

Mobile: 71498632

Corporatecomms@botswanapost.co.bw

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