BBS profits hold steady despite margin squeeze

According to interim results released today, a P99.6 million jump in long and short-term loans owed to the Society in the six months to September 30 did not proportionately translate into higher interest income. Prime lending rates have been pegged at 11 percent since December 2010 with the Bank of Botswana choosing to spur economic recovery through a low interest environment.

For BBS, the result has been a squeeze on interest rates paid to depositors and the interest income it expects from its loan book.