The Botswana Building Society (BBS),┬áan enterprise looking into the future of commercial banking licence, is upbeat about its prospects in the new territory, it announced in its full year to the end of March 31, this year.
The Society recorded an impressive operating income of┬áP 177.3 million while the actual bottomÔÇôline fell to P71 million, according to the full year┬áfinancial statement.┬á
It also pointed that it has a solid cash reserve of P 95 million.
However, the┬áSociety needs much better plans going forward given the fact that First National Bank of Botswana (FNBB) and Banc ABC are fast catching up on its core market, according to independent research┬ágeared towards property market.
The Society’s loan book is at P 2.288 billion or 19 percent up with default rate of less than 1 percent.
FNBB has already had a head start in that field as of the┬áclose of last year’s results from┬áthe national deeds registry and the actual bank balance-sheet, it pointed out.
Pius Molefe, the Managing Director of BBS, is a bold man with a supportive staff team and board vowing to overcome all the obstacles that are being presented by the current situation. One of the things is to lobby for a commercial licence┬áin the current session of parliament so that they can be on an equal footing with other banks on┬áthe market.
“However, we realise that the above strategy cannot┬ábe sustained if we do not have a┬ácomprehensive┬ástrategy┬áto strengthen the business,” the Society said. “We have, therefore, recently redefined our strategic objectives contained in the strategy of┬á 2013/2018, which we are already implementing┬á and whose overall objective┬á is to demutualise the Society as previously reported.”
The Society said┬áit will┬ápaint the market with the latest┬ábanking technology that will┬áput it in the Ivy League with the rest of ┬áthe banking sector in the country.
There are also strong arguments for the health of the Society despite the uneven playing ground in the banking sector. The customers fixed deposits were up to P 591 million against P 439 million in the previous year. While indefinite period shares went up by 17 percent to P 619 million.