Bank profits hold steady

Mbongeni Mguni | Wednesday June 9, 2021 16:13

 

Bank profits hold steady

Figures released by the Bank of Botswana recently underline the local banking sector’s resilience despite COVID-19, as the banks adjusted their risk appetites but generally maintained profitability.

According to the figures, the first quarter 2021 profits were about 13% lower than those of the corresponding period in 2020, which was the period before the pandemic hit Botswana. In the first quarter after COVID-19’s onset last year, collective profits fell to P181 million as banks provided repayment holidays and other relief to customers. 

Central bank figures show that profits then began recovering from the third quarter, although individual banks report that they restrained their credit output in light of the market stress.

Total loans and advances from commercial banks fell to P62.6 billion in March 2021, from P63.2 billion in February, according to Bank of Botswana figures.