Access Bank PLC, the majority shareholder in local bank, Access Bank Botswana, sold about 59.1 million of its holdings over two on-market transactions recently.
As at December 2023, Access Bank PLC held 78.15% equity in the local bank, a stake acquired through the purchase of ABC Holdings’ equity in early 2021. Over the two deals last week, Access reduced its direct shareholding in Access Bank Botswana from 78.15% to an estimated 69.99%.
While some details of the transactions were published on the Botswana Stock Exchange (BSE), no information was provided on the buyer or buyers of the shares. Outside of Access Bank PLC, the other major equity holder in Access Bank Botswana is the Botswana Public Officers Pension Fund which held 7.7 percent as at December 2023.
The two transactions carried out on consecutive days, perked up the BSE’s turnover last week, particularly as Access Bank Botswana’s share price rose by 24 thebe between the two sales. In the year to December 2023, the local bank’s pretax profits nearly doubled to P52.3 million, despite a narrowing of its loan book from P6.6 billion to P6.1 billion, the latter development attributed to lower market demand for personal loans.
The bank’s net fee and commission income rose 44% to P172.3 million, while the digitisation strategy paid dividends as uptake ballooned during the period. Non-interest revenue increased by 36% from digital products, lending-related fees, and transactional revenues, while users in the digital platforms continued to grow, increasing by 47% during the year under review.
