Botswana Savings Bank (BSB) has pulled off a financial coup, posting an eye-popping 1520 percent increase in profit after tax for the six months ending September 30, 2024. The bank’s profit climbed to P52.8 million from a modest P3.3 million a year earlier, as it leaned on its “Lesedi Strategy” to turbocharge growth and bring home the bacon.
Net interest income jumped 91 percent to P126 million, fueled by a bold strategy that included deploying an army of direct sales agents and extending loan tenures to customers who clearly couldn’t say no. Meanwhile, BSB’s loan book ballooned by 93 percent to P4.3 billion, proving that when it comes to lending, this bank isn’t shy.
Insurance also came to the party, with BSB Insurance Services raking in P24.2 million, pushing non-funded income up a jaw-dropping 137 percent to P52.4 million. If that wasn’t enough, customer deposits surged by 63 percent to P4.4 billion, showing that customers have plenty of faith—or maybe just nowhere else to stash their cash.
BSB’s balance sheet is looking pretty buff, with a liquidity asset ratio at a healthy 18 percent, nearly double the regulatory minimum. Its capital adequacy ratio also clocked in at 13 percent, comfortably above the 12.5 percent requirement. Return on equity? A chunky 16 percent, up from a barely-there 1.8 percent last year.
This stellar performance is all the more remarkable given Botswana’s sluggish economy. While the nation’s growth cooled to 2.7 percent in 2023, largely thanks to a rough patch in diamond trading, BSB seems to be in a league of its own, thriving in a market where others are merely surviving.
As it looks to the future, BSB is banking on its digital transformation efforts to keep the momentum going. And let’s not forget the elephant in the room—privatization. Talks with the government are ongoing, but in the meantime, BSB is all about business, preparing itself for a commercial future while keeping one eye on its impressive growth trajectory.
