Bank Gaborone, the relatively new bank in the market, sent warning bells to its competitors here to stay with the latest financial results showing it grew its loan book and deposit in 2011.
The un-listed bank, headed by Andre Barnard, grew its net income by 32 percent from P69 million in 2010 to P91.8 million, its financial results for the year ended 30 June, 2011 showed.
The company results published in the Sunday Standard attributed the growth in net income to ‘significant increase in loans and advances’.
However, the bank has admitted it is trading in tough conditions and will guard against risk.
“Bank Gaborone remains aware of the continued worldwide economic instability and its impact on the local economy,” the bank warned in a statement accompanying the financial results.
“We will conduct our business appropriately under the prevailing conditions in order to limit risk as far as possible.”
The bank, however, managed to record a profit of P12 .5 million before income tax, which was better than the P7.7 million figure reported in the same period last year.
Profit for the year also rose to P9.3 million from P5.8 million in the prior year. But a dividend was not declared in order for the bank to preserve the Tier 1 Capital for future growth.
The bank’s loans and advances to customers stood at P1.5 billion by June 30, 2011, which was an improvement from P943 million in the same period in 2010.
On the other hand, the deposits from customers grew from P1.3 billion last year to stand at P1.9 billion at June, 30, 2011.
Bank Gaborone said the overall impairments improved to 1.9 percent of total advances compared to 2.2 percent in the previous year.
However, operating expenses increased by P18 million or 25 percent and was largely attributable to the continued expansion across the country.
The bank website showed it has five branches; two in Gaborone (one in Main Mall and Game City Mall), one in ┬áMolepolole at Mafenyatlala Mall, one in Francistown at Galo Mall and one in ┬áGhanzi.
The bank’s capital adequacy was at 17.5 percent, which is 2.5 percent above the prescribed minimum set by the Central Bank.
“The board continued to limit the bank’s exposure to sectors where credit risk was perceived unattractive in the current financial year,” Bank Gaborone said in a statement.
Bank Gaborone is currently not listed and the majority of shares (95.5 percent) are held by Capricorn Investment Holdings (Botswana).
Barnard told a recent media briefing in the build up to the bank’s 5-year anniversary that they ‘want to sell 25 percent of the bank share to Batswana in the next twelve months’.