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Stanbic’s initiatives bear fruit, as profit before tax rise

Stanbic Bank
Stanbic Bank

Local commercial bank, Stanbic Bank Botswana, says its profit before tax rose in last year’s financial year underpinned by a host of initiatives including investment in technology.

According to the bank’s 2024 annual report, PBT or profitability before the deduction of income tax expenses, stood at P950 million, representing a 43.7% increase from P661 million reported in 2023. It attributed the strong financial performance to strategic execution, capital efficiency, and ongoing investment in technology and data-led solutions. The growth was equally supported by a 10.4% expansion in the balance sheet, driven by a 9.4 percent increase in customer deposits and a 12.2% rise in customer loans and advances. The improvements reflect the bank’s continued focus on enhancing client experiences and optimising internal processes to drive sustainable growth. Directors highlighted in the annual report the success of several strategic initiatives, including a reimagined client engagement model and targeted partnerships, such as the collaboration with Kwenantle, which was structured around the client’s sustainability outlook. “Strategic initiatives such as the client engagement model and partnerships like the one with Kwenantle reflect the Bank’s commitment to co-creating solutions aligned with client needs,” the report noted.

On the other hand, Stanbic made significant strides in strengthening its credit risk management framework. The result was the declining credit loss ratio which improved from 0.6 percent in 2023 to 0.2 percent in 2024, despite the higher loan volumes. ‘This was made possible through improved credit policies, enhanced recoveries, and ongoing staff training, supported by a data-driven talent and analytics framework. These efforts led to a 60.8% improvement in credit impairments year-on-year,’ the bank stated. The bank’s Corporate and Investment Banking (CIB) division delivered headline earnings of P323 million, a 22.7% increase, driven by robust loan origination aligned with local corporates’ expansion plans across the African continent. The division also benefited from increased client demand for sustainable finance and growth within the transactional banking space.

Editor's Comment
Tana project a welcome development

Whilst the project received mixed reactions from members of the public, the project is indeed a welcome development, which needs to be implemented as soon as possible. Many shared their opinion, with those against the project decrying that if implemented, it will kill the already struggling public transport industry.Many countries around the world have state-run public transport, and those who have travelled to such countries will give testimony...

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