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Banks profitability sink to new lows

Motsomi
Motsomi

Profitability among commercial banks sank to a new low in 2015 as the sector suffered the effects of low interest rates, a freeze in bank charges hike and negative economic growth.

According to the Bank of Botswana 2015 Annual Report released this week, profitability among the banks as measured by Return on Equity (RoE) as well as Return on Assets (RoA) declined with one smaller bank recording a loss in the year.

Although the report showed profitability by individual banks, the central bank says the maximum RoE registered by banks fell to 21.4% from 27% in 2014 while the bank that had the lowest profitability registered a negative (6.2 percent) RoE in 2015.

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