• Mining sector endures worst recessionMay 27, 2025
    Mining shows zero confidence on better business conditions Weaker global demand of rough diamonds trouble the sector Other sectors optimistic about improved conditions in 2025   BAKANG TIRO RelatedPosts Mining sector endures worst recession Who is the PSP PROTECTING?… Read more: Mining sector endures worst recession
  • Who is the PSP PROTECTING?May 27, 2025
    “She is protecting those facing corruption probe, hence removing DCEC intelligence head”- claim The DCEC recently confirmed that it was investigating some senior govt officials   DITIRO MOTLHABANE RelatedPosts Mining sector endures worst recession Who is the PSP PROTECTING?… Read more: Who is the PSP PROTECTING?
  • TIKI MEDIA * Head Branding SolutionsMay 26, 2025
    RelatedPosts TIKI MEDIA * Head Branding Solutions WILDERNESS AIR * Quality Assurance Manger MINISTRY OF COMMUNICATIONS AND INNOVATION * Deputy Director – Department of Shared Digital Services * Director – Research and Knowledge Business
  • WILDERNESS AIR * Quality Assurance MangerMay 26, 2025
    RelatedPosts TIKI MEDIA * Head Branding Solutions WILDERNESS AIR * Quality Assurance Manger MINISTRY OF COMMUNICATIONS AND INNOVATION * Deputy Director – Department of Shared Digital Services * Director – Research and Knowledge Business
  • MINISTRY OF COMMUNICATIONS AND INNOVATION * Deputy Director – Department of Shared Digital Services * Director – Research and Knowledge BusinessMay 26, 2025
    RelatedPosts TIKI MEDIA * Head Branding Solutions WILDERNESS AIR * Quality Assurance Manger MINISTRY OF COMMUNICATIONS AND INNOVATION * Deputy Director – Department of Shared Digital Services * Director – Research and Knowledge Business
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
  • Login
  • Register
Wednesday, May 28, 2025
17 °c
Gaborone
21 ° Tue
22 ° Wed
24 ° Thu
26 ° Fri
The Patriot On Sunday
Advertisement
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
No Result
View All Result
Cart / $0.00

No products in the cart.

  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
No Result
View All Result
The Patriot On Sunday
No Result
View All Result
Home Business

Absa Botswana cuts costs; post strong results

patriot by patriot
September 23, 2021
in Business
235
0
Absa Bank Botswana Managing Director Keabetswe Pheko-Moshagane

Absa Bank Botswana Managing Director Keabetswe Pheko-Moshagane

491
SHARES
1.4k
VIEWS
ShareShareShare

STAFF WRITER

editors@thepatriot.co.bw

RelatedPosts

Mining sector endures worst recession

VP applauds the Northern Trade Fair

ALC’s STRATEGIC investment

Absa Bank Botswana has lauded positive performance of the impairment line as well as positive momentum in cost lines for a whooping growth of 126 % in profit before tax.   

“Pre-provision profit has also grown year-on-year by 9%. Consequently, we have seen Return on Equity (ROE) growing to 19%. Our total revenue declined 1% year-on-year. Net interest income declined 8% due to margin compression driven by interest rate cuts in 2020, however the sales and transactional banking franchise realised pleasing recovery rates with volumes going up to almost pre COVID-19 levels, thereby our fee revenue grew 20% year-on-year. Operating costs remain well contained, on a reducing trend compared to prior year. On a statutory basis operating expenses totalled P460 million representing a 7% decrease year-on-year. This was achieved by an overall reduction in spend as we continue to leverage on a leaner, rotational and digitally-led operating model,” said the bank in a statement prefacing the financial results for the period ending 30 June 2021.

The bank said costs benefited from the absence of Voluntary Staff Separation exercise that happened in the first half of 2020, together with a significant reduction in separation expenses as the rebranding exercise has been completed.

“On a year-on-year basis our credit losses decreased materially by 74%. This significant drop was driven primarily by better than-expected performance of the macroeconomic variables, predominantly GDP which carries a higher weighting in our risk models, together with improved and stable portfolio performance, loan loss rate improved to less than 1% for period ended 30 June 2021,” the bank said.

The bank’s balance sheet posted an overall growth of 14% to reach P21.5 billion with customer loans and deposits being key drivers of balance sheet growth.

“Customer loans grew by 9% year-on-year to P14.8 billion. We have seen increased momentum in our loan conversion rates especially in RBB where growth was driven by scheme loans, mortgage loans and Enterprise Supply-chain Development (ESD) loans. This growth is in line with our strategy to continue to lend a hand to our customers who need support during this period and support the initiatives around the citizen economic empowerment and economic diversification,” said the bank.

Customer deposits, the bank said, registered 15% growth in comparison to same period last year reaching P16 billion as of 30 June 2021.

“With our solid balance sheet position, recovery in profitability we have strengthened further our capital position which stands at P2.9 billion and representing a capital adequacy ratio of 18% against a regulatory requirement of 12.5%. Liquid assets ratio stood at 14.6% well above a regulatory limit of 10%,” said the bank.

Related

Get real time update about this post categories directly on your device, subscribe now.

Unsubscribe
Previous Post

Current Account posts P4.7 billion surplus

Next Post

Letshego keeps shining at BSE

Related Posts

Mining sector endures worst recession
Business

Mining sector endures worst recession

May 27, 2025
VP applauds the Northern Trade Fair
Business

VP applauds the Northern Trade Fair

May 26, 2025
ALC’s STRATEGIC investment
Business

ALC’s STRATEGIC investment

May 19, 2025
Stanbic boosts green economy
Business

Stanbic boosts green economy

May 12, 2025
STRONG, FOCUSED FORCE OF NATURE
Business

STRONG, FOCUSED FORCE OF NATURE

May 7, 2025
Modernising the exchange
Business

Modernising the exchange

May 7, 2025
Next Post
Letshego keeps shining at BSE

Letshego keeps shining at BSE

Please login to join discussion
  • Mining sector endures worst recessionMay 27, 2025
    Mining shows zero confidence on better business conditions Weaker global demand of rough diamonds trouble the sector Other sectors optimistic about improved conditions in 2025   BAKANG TIRO RelatedPosts Mining sector endures worst recession Who is the PSP PROTECTING?… Read more: Mining sector endures worst recession
  • Who is the PSP PROTECTING?May 27, 2025
    “She is protecting those facing corruption probe, hence removing DCEC intelligence head”- claim The DCEC recently confirmed that it was investigating some senior govt officials   DITIRO MOTLHABANE RelatedPosts Mining sector endures worst recession Who is the PSP PROTECTING?… Read more: Who is the PSP PROTECTING?
  • TIKI MEDIA * Head Branding SolutionsMay 26, 2025
    RelatedPosts TIKI MEDIA * Head Branding Solutions WILDERNESS AIR * Quality Assurance Manger MINISTRY OF COMMUNICATIONS AND INNOVATION * Deputy Director – Department of Shared Digital Services * Director – Research and Knowledge Business
  • WILDERNESS AIR * Quality Assurance MangerMay 26, 2025
    RelatedPosts TIKI MEDIA * Head Branding Solutions WILDERNESS AIR * Quality Assurance Manger MINISTRY OF COMMUNICATIONS AND INNOVATION * Deputy Director – Department of Shared Digital Services * Director – Research and Knowledge Business
  • MINISTRY OF COMMUNICATIONS AND INNOVATION * Deputy Director – Department of Shared Digital Services * Director – Research and Knowledge BusinessMay 26, 2025
    RelatedPosts TIKI MEDIA * Head Branding Solutions WILDERNESS AIR * Quality Assurance Manger MINISTRY OF COMMUNICATIONS AND INNOVATION * Deputy Director – Department of Shared Digital Services * Director – Research and Knowledge Business
The Patriot On Sunday

© 2024 Copyright The Patriot On Sunday - Inspired by Search Mart.

Navigate Site

  • About Us
  • Advertise
  • Disclaimer
  • Contact Us

Follow Us

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Login
  • Sign Up
  • Cart
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders

© 2024 Copyright The Patriot On Sunday - Inspired by Search Mart.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?