Mmegi

Bank profits head for new record

Target market: Despite the tightening economic conditions for consumers since COVID-19, local banks have been able to keep the growth in their non-performing loans restrained PIC.KENNEDY RAMOKONE
Target market: Despite the tightening economic conditions for consumers since COVID-19, local banks have been able to keep the growth in their non-performing loans restrained PIC.KENNEDY RAMOKONE

The country’s commercial banks appear on track to set a new record for their collective annual earnings after their after-tax profits in the first six months hit about P2 billion, more than 30% higher than the same period last year.

Banking is amongst the country’s most profitable sectors, with local banks’ collective profits breaking historic records in two of the three years since the pandemic year of 2020. Banks’ profits have defied downturns such as COVID-19, with nearly all entities digitising and boosting their non-interest income, tightening their operating structures and innovating around credit products and services.

Bank of Botswana figures released recently show that as at June 30, the country’s commercial banks had reaped a collective P1.97 billion in after-tax profits, putting them well on track to exceed the record P3.2 billion in profits they made last year.

Editor's Comment
Time to end informal sector fronting

The Francistown Umbrella Informal Sector chairperson, David Mbulawa, has highlighted this growing concern, revealing that many local traders are using their licences to facilitate the entry of foreign goods into the market at a fee.Fronting undermines the very fabric of our local economy. It allows foreign traders to exploit the system designed to benefit Batswana, using local licences to cross borders and sell goods at prices intended for local...

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