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BotswanaBest bank: First National Bank of Botswana |
First National Bank of Botswana (FNBB) continues to perform strongly and, after reporting a 16% year-on-year increase in market capitalization, wins the award for Botswana’s best bank again this year.
FNBB reported a 13% increase in profit before tax to P544.9 million ($46.2 million), while its return on tangible common equity increased 3% to 25.4% from 24.6% at the end of 2018. Interest income increased by 5% against growth in gross advances of 3%.
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Steven Bogatsu, |
In 2019, the bank focused on improving credit discipline by tackling its distressed debt portfolio, reducing non-performing loans by 10% to 6.9% of lending from 7.6% a year earlier.
Even before the onset of the Covid-19 pandemic, FNBB noted that stress was evident in its credit portfolios, and it was adopting a cautious and selective approach to credit.
Chief executive Steven Bogatsu has said that the bank is expecting a downturn in both loan uptake and credit expansion.
However, it continues to invest in digital, which will stand it in good stead through the economic downturn and beyond.