BSB profits reach P76m
Pauline Dikuelo | Monday July 7, 2025 06:00
The growth was largely attributed to a robust expansion in the asset base and a significant P24.4 million contribution from BSB Insurance Services to the Group’s overall performance.
According to group executives, a recalibrated sales strategy played a pivotal role in this turnaround.
“The bank strategically expanded its direct sales agency network, increased maximum loan thresholds, and introduced longer loan tenures measures that collectively drove an 80% year on year growth in net interest income to P312 million, compared to P173 million in the prior year,” executives said.
During the reporting period, net advances rose by 63%, reaching P4.4 billion from P2.7 billion, reflecting the Bank’s continued success in deepening market penetration and growing its customer base. In parallel, customer deposits also recorded strong growth, climbing 63% to P4.1 billion from P2.5 billion signifying sustained customer trust and confidence.
The Bank maintained a healthy Capital Adequacy Ratio (CAR) of 16.6%, comfortably above the 12.5% regulatory minimum. This was supported by the successful issuance of a P50 million Tier II bond in December 2024, reinforcing the Bank’s capital structure and bolstering its readiness for future growth.
Liquidity remained strong, with the Liquidity Asset Ratio standing at 11%, exceeding the 10% regulatory threshold. Return on Equity (ROE) also improved to 22%, underscoring enhanced efficiency in capital utilisation and the Bank’s solid momentum heading into the next financial year.
Looking forward, the bank expects to meet, if not surpass, its financial targets in the coming year.
“Our ongoing digital transformation initiatives are anticipated to bring the much-needed efficiencies, cost reduction, and revenue growth,” the executive said. “Additionally, the bank continues to engage with the government regarding the privatisation of the bank. While discussions are ongoing, our focus remains on commercialising the bank and preparing it for eventual privatisation. “We view this as a pivotal enabler that will allow BSB to compete on equal footing, unlock new markets, and deepen its development impact.”
The financial year ended March 31, 2025, marked the successful conclusion of the Bank’s bold three-year strategy Transformation Agenda under the Lesedi strategy 2022–2025, a strategy that positioned Botswana Savings Bank to emerge as a credible, Botswana-owned integrated financial services provider. The strategy has delivered both commercially and operationally, through the stabilisation of BSB’s digital infrastructure and the evolution of customer-facing platforms.