BBS Bank posts first profit
Mbongeni Mguni | Thursday October 3, 2024 16:20
According to the results published on the Botswana Stock Exchange recently, BBS Bank’s interest income shot up 42% year on year to P233 million, off the back of a stronger loan book which went from P3.3 billion to P4.2 billion between June 2023 and June 2024.
Directors said the bank’s cost of funding significantly improved compared to the previous period due to better market liquidity and acquiring deposits became less expensive than in the previous period. BBS Bank received strong support from its corporate clients, achieving a 46% year-on-year growth in deposits.
Directors said, as a result, the group maintained a healthy cash position, enabling business growth with minimal pressure. Personnel expenses decreased from P52.8 million in June 2023 to P44.5 million in June 2024, due to P11 million in once-off staff exit costs from the prior period. Directors said the group is “undoubtedly on an upward trajectory” based on an assessment of the strategic initiatives that have been and continue to be implemented under the Pilediwa Corporate Strategy.
The Pilediwa Strategy commenced in 2023, and by its projected end, is expected to result in a profitable bank through the launch of various products and services, including digital offerings as well as heightened operational efficiencies.