adminNet interest margins rose to 6,7 percent from 6,5 percent as the retail bank loan book contribution to total advances increased to 40 percent from 20 percent, the regional banking group said in its financial results yesterday. Non-interest income was driven by a 104 percent increase in fee and commission income to BWP330 million, a 27 percent growth in forex earnings to BWP147 million and a 154 percent jump in rental and other income to BWP40,6 million.
Operating expenses were managed, growing below total income growth at 59 percent due to the retail bank rollout. A final dividend of 8 thebe (about US0,96c) was declared.
All banking subsidiaries recorded double- digit growth in attributable earnings except for Tanzania and Mozambique. Zimbabwe contributed the lion’s share of the profits, growing 88 percent to BWP103 million compared to the previous period.
Attributable earnings for Botswana were up 237 percent to BWP94 million and Zambia was up 13 percent to BWP36 million.
However, Mozambique earnings were down 39 percent to BWP18 million while Tanzania posted a loss of BWP39 million against a loss of BWP3 million in the previous comparable period.
The balance sheet grew 46 percent as deposits and advances expanded by 45 percent and 51 percent, respectively. Non-performing loans ratio deteriorated to 9,2 percent from 6,6 percent, negatively impacted by Tanzania and Zimbabwe.
The group target NPL ratio is 3 percent. For Tanzania NPL ratio worsened to 33 percent from 15 percent and impairments grew by 17 percent to BWP38 million.
The Zimbabwe banking subsidiary’s NPLs increased to 14,2 percent from 5,8 percent negatively impacted by the tight liquidity conditions.
Online Reporter