BIHL profits drop on low consumer spending

Lesetedi-Letegele
Lesetedi-Letegele

Unstable world economic outlook and constrained household income growth, which repress discretionary spending has impacted adversely on the Botswana Insurance Holdings Limited (BIHL).

The Botswana Stock Exchange (BSE) quoted financial services group recorded an eight percent loss in profit before tax (PBT) from P314.4 million last year to P289.7 million in the six months to June 30, 2017.

According to the group’s unaudited financial results for the six months ended June 30, 2017, net premium income also decreased by four precent year-on-year to P1.1 billion compared to P1.2 billion achieved in prior year due to suppressed annuity business income.

Editor's Comment
Botswana at a critical juncture

While the political shift brings hope for change, it also places immense pressure on the new administration to deliver on its election promises in the face of serious economic challenges.On another level, newly appointed Finance Minister Ndaba Gaolathe’s grim assessment of the country’s finances adds urgency to the moment. The budget deficit, expected to be P8.7 billion, is now anticipated to be even higher due to underperforming diamond...

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