Banks profitability plunging
Friday, September 05, 2014
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banks annual report
While most banks profitability was largely lukewarm in the year, a 29 percent drop in profit before tax at Barclays pulled down the whole industry’s profitability ratios in the year According to the Bank of Botswana Annual Banking Supervision report released last week, key profitability indicators maintained the downward trajectory as lower interest rates and reduced Bank of Botswana Certificates (BoBCs) impacted on profitability.
While in absolute terms after tax profits for all commercial banks remained unchanged at P1.77 billion, profitability ratios tumbled with the Return on Equity (ROE) decreasing from 31.9 percent to 27.4 percent. Return on average total assets (ROAA) fell from 3.2 percent to three percent. “The growth in banking industry profitability was subdued in 2013.
These roads, which are vital conduits for trade and tourism, have long been in dire need of repair. However, while this development is undoubtedly a positive step, it also raises questions about broader issues of infrastructural management and road safety that deserve closer scrutiny.The A3 and A33 roads are not just any roads, they are critical arteries that connect Botswana to its neighbours and facilitate the movement of goods and people...