Bank Gaborone, the local commercial bank, continues to register an upward growth in its balance sheet and warned competitors it is here to stay in Botswana’s competitive banking landscape as seen by numbers in its latest financial results.
According to the bank’s full year results for the year ended June 2013, there has been significant growth in the loan book and the bank’s assets since it was licensed.
Bank Gaborone said its net interest income increased by 18 percent from P112.2 million as recorded in full year 2012 to P132.6 million in 2013.
“This satisfactory growth was achieved at the back of a significant increase in loans and advances,” said the bank in the statement accompanying the financial results.
Loans and advances to customers rose from P1.9 billion in the corresponding period to P2.1 billion in full year 2013 while total assets were up to P3.3 billion from P2.6 billion in 2012.
The profit before income tax increased from P21.6 million to P345 million.
The bank noted its overall impairments on the other hand improved marginally to 1.6 percent from 1.8 percent on the prior year which it said is “reflective of the board’s continued focus to limit exposure to sectors where credit risk is undesirable in the current financial climate”.
Bank Gaborone, which was licensed in 2006, has six branches; three in Gaborone (Airport Junction, Main Mall and Game City Mall), one in Molepolole at Mafenyatlala Mall, one in Francistown at Galo Mall and one in Ghanzi. It said it will steadily expand its network to other towns.
“Operating expenses were well controlled considering that it increased by only 14 percent while expansion across the country continued,” the bank added.
The bank said it is aware of continued worldwide economic instability which started in 2008. “The bank will conduct its business appropriately under the prevailing conditions in order to limit risks as far as possible,” it added.
Bank Gaborone is a wholly owned subsidiary of Capricorn Investment Holdings (Botswana) (Pty) Ltd, in which CIH holds a 95.5 percent interest and is the first green field operation in the history of the diversified CIH group of companies.