The executive of the bank, which is also listed on the Botswana Stock Exchange, announced last week that P195 million in funding has been disbursed to local businesses in the first half of 2025. The funding brings the bank's total support for SMEs over the past three years to over P1.1 billion, solidifying its role as a key financier of Botswana's entrepreneurial landscape. This significant capital injection has had a direct impact on the national economy, enabling the creation of 336 new jobs and highlighting the sector's vital contribution to employment and GDP growth. “This has empowered SMEs to grow their businesses, creating employment and contributing meaningfully to national economic growth while enhancing livelihoods across communities,” Absa Managing Director Keabetswe Pheko-Moshagane said. The MD was commenting on the bank’s financial performance for the six months ended June 30, 2025. Beyond financing the sector, Absa strengthened its holistic support for SMEs by delivering capacity-building training and mentorship sessions nationwide in collaboration with strategic partners. The initiatives were designed to enhance the resilience and competitiveness of clients, equipping them with the skills and resources needed to adapt to market pressures, expand their businesses, and seize emerging opportunities.
Absa’s dedicated efforts in fostering entrepreneurship and supporting SME growth were internationally recognized, earning it the 2025 Best SME Bank Botswana award from the Global Finance Review. Meanwhile, the interim results show that the bank's net revenue saw a slight increase, although profit before tax (PBT) decreased by 26.7% to P412 million from the P563 million recorded in the corresponding period in 2024. Absa attributed the decline primarily to increased impairments and higher operating costs reflective of ongoing long-term investment in franchise growth. A segmental performance review showed that Retail and Business Banking (RBB) recorded a three percent growth in topline performance, underpinned by healthy deposit growth. However, increased provisions reflecting the current economic challenges resulted in a 32% decline in profit before tax (PBT) for the segment. Corporate and Investment Banking (CIB) saw a PBT decline of 14%, due to lower net interest income and trading revenue, though impairments were largely contained, signalling prudent credit risk management. On the other hand, the bank’s operating expenses increased by 15.6% to P647 million, driven by higher staff costs, which grew by 17.2% to P262 million, and general administration costs, which increased by 28.5% to P289 million. ‘This reflects strategic investments in people, systems, and regulatory compliance’.
