Bank profits defy COVID-19

Nearly all commercial banks provided loan repayment relief to customers last year, as well as other interventions to help customers cope with the impact of COVID-19. 

The pandemic ripped through consumers’ disposable incomes and their ability to service loan commitments, while also making banks risk averse in terms of extending new credit. Banks also saw their margins tightened by a 100 basis point reduction in the bank rate, as the Bank of Botswana eased monetary policy in order to encourage economic activity.