Barclays Bank of Botswana defied tough trading environment over the last year as its latest financial showed it managed to increase profit before and after taxation, but warned trading conditions will remain tough in 2012.
According to the bank’s audited results for the year ended 31, December, 2011, profit for the year is up 5 percent from P499 million in the prior year to P526.5 million although net interest income fell 2 percent from P1.1 billion to P985.9 million.
Barclays’ Acting Managing Director, Aupa Monyatsi, said revenues were resilient in the period as the bank continued to invest in new product offering and infrastructure improvement.
“Conditions will continue to remain challenging in 2012, but I know that we have the right strategy and a committed team to continue to deliver products and services that meet the needs of our customers,” Monyatsi said.
The bank, which has been attracting bad press in the recent past, took war to its competitors through customer attractions, like cancellation of unpaid stop order charges.
Barclays also cancelled ATM fees, reduced withdrawal fees on Lekgolo Savings product from P100 to P30 and introduced a discounted rate on unsecured loans of 4 percent.
However, the changes affected the bank’s profit before tax by around P46 million. The profit before taxation was down by 2 percent from P657.3 million in 2010 to P643.7 million.
“The focus in 2011 was to ensure that customers understand the product offering of Barclays,” said the bank in a statement accompanying the results.
“Access to products and services was made more convenient to ensure that the bank adheres to principles of value for money,” it added.