Tuesday, May 18, 2021

FNBB records marginal increase in market share

First National Bank Botswana (FNBB)’s exponential growth has resulted in the bank increasing its lead in the commercial banks’ market share, financial markets figures have shown.

FNBB’s latest balance sheet shows that its market share slightly increased from 26 percent in the prior year to 27 percent in the current year whilst advances market share also grew marginally from 28 percent in the prior year to 29 percent in the current year.

The latest financial statements from the bank shows that despite what the bank calls, “tough trading conditions”, its balance sheet grew by a healthy 12 percent to P17.64 billion from P15.80 billion. At the same time, FNBB’s advances to customers registered a strong growth of 17 percent, thereby reaching a historical high of P12.1 billion buoyed by good growth in deposits from customers of 11percent from P12.93 billion to P14.33billion.

“Most of the advances’ growth was achieved in the secured asset class as the Bank moved to a more conservative credit risk appetite. After the launch of the RMB brand during the financial year, significant growth was registered from the corporate segment,” read a statement from the Bank.

Trading figures from the Bank further show that its advances book remains well diversified across all segments, with the commercial segment also showing good growth during the year. FNBB Chief Finance Officer (CFO) Boitumelo Mogopa on Friday explained that most of the Bank’s advances growth┬áwas achieved in┬áthe secured asset class as it moved to a more conservative credit┬árisk appetite.┬áShe added that the Bank’s advances book remains┬áwell diversified┬áacross all segments with the commercial segment also showing good┬ágrowth during the year. “This financial year’s good growth saw the bank increasing its lead in┬áthe┬ácommercial banks’ market share,” she said. FNBB outgoing Chief Executive Officer Lorato Boakgomo-Ntakhwana highlighted that the Bank’s fundamentals remain very strong and place it in good stead to exploit new opportunities in the market. She added that the customer centric strategy that the bank has embarked on, supported by a refined segmentation model, will position the bank to achieve strong results going forward.

“We have reached a milestone and it has been a great journey that we started five years ago and June 2014 was a significant time for us in Botswana,” said Boakgomo-Ntakhwana.

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