BBS banks on demutualisation as profits fall

According to the results, BBS recorded a four percent decline in profits from P71million in the previous year to P68 million. In a statement accompanying the results, BBS board Chairman Cross Kgosidiile attributed the decline in profits to the constraints placed on the Society by the restrictive Building Societies Act.

While BBS has been restricted by law to mortgage lending and deposit-taking activities only, it has faced stiff competition in the market from commercial banks, which can offer many other lines of products.