Bank Gaborone Loan Book Balloons
Pauline Dikuelo | Monday October 8, 2018 12:18
The bank attributed the growth to the individual loans, which went up by 8.9% to P304 million compared to P279 million recorded last year.
According to the bank’s financial results for the year ended June 30, 2018, commercial loans grew by 42.7% to P1.1 billion from P804 million and mortgage loans grew by four percent to P1.5 billion from P1 billion.
However the bank’s impairment charges on loans declined by 48% from P35.4 million to P18.5 million mainly due to a provision made in prior year relating to the closure of mining companies.
Non-performing loans as a percentage of gross loans and advances increased to 5.5% from 4.6% recorded last year.
When commenting on the results, the managing director Sybrand Coetzee said the bank remains positive notwithstanding the subdued economic and business outlook in the country.
“We will continue to deliver solid results and value to our stakeholders. This requires us to be innovative and continuously explore new investments, technologies and product and service offerings,” he said.
He said the bank continues to invest in opportunities that will enable them to achieve operational excellence and maintain high performance culture.
Through their strategic choices, the bank expects to improve efficiencies, realise cost savings, expand and diversify revenue streams and manage risks responsively.
During the reporting period, the bank achieved profit after tax of P40 million, a 12% increase compared to P35 million recorded in the prior year on the corresponding period.
Total funding for the bank increased by five percent to P4.4 billion from P4.2 billion due to increase in demand deposits by 9.5% to P599 million, savings deposits by 71% to P232 million and term deposits by 3.8% to P2.3billion while other securities increased by P41 million due to the capital injected during the year.
“Non interest income decreased by one percent to P43million mainly due to the adjustment made in accordance with IFRS. In above to the requirement, administration fee for non-micro loans were deferred based on the effective interest rate of each loan. The cumulative impact of this was P3.4 million,” he said
Bank Gaborone is a public unlisted company incorporated and domiciled in Botswana wholly owned by Capricon Investment Holdings.