Mmegi

Bank profits head for new record

Target market: Despite the tightening economic conditions for consumers since COVID-19, local banks have been able to keep the growth in their non-performing loans restrained PIC.KENNEDY RAMOKONE
Target market: Despite the tightening economic conditions for consumers since COVID-19, local banks have been able to keep the growth in their non-performing loans restrained PIC.KENNEDY RAMOKONE

The country’s commercial banks appear on track to set a new record for their collective annual earnings after their after-tax profits in the first six months hit about P2 billion, more than 30% higher than the same period last year.

Banking is amongst the country’s most profitable sectors, with local banks’ collective profits breaking historic records in two of the three years since the pandemic year of 2020. Banks’ profits have defied downturns such as COVID-19, with nearly all entities digitising and boosting their non-interest income, tightening their operating structures and innovating around credit products and services.

Bank of Botswana figures released recently show that as at June 30, the country’s commercial banks had reaped a collective P1.97 billion in after-tax profits, putting them well on track to exceed the record P3.2 billion in profits they made last year.

Editor's Comment
Micro-procurement maze demands urgent reform

Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...

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