Monday, October 25, 2021

The banker’s 2017 report card

Sunday Standard’s KABELO SEITSHIRO reviews key transactions in the country’s banking sector during 2017.

FNBB – In June 2017, the First National Bank Botswana (FNBB), one of the leading commercial banks in the country confirmed the departure of a sizeable number of its executive team members. At the capital markets, FNBB was worryingly the 3rd biggest loser on BSE at the beginning of this month. By close of business on December 12, the stock price of the bank was down to 225 Thebe reflecting a 24 percent downfall.

Stanbic Bank of Botswana – Stanbic Bank Botswana, one of the growing commercial banks in the country lost its managing director, Leina Gabaraane to its sister company in Zambia. The bank remains unlisted despite numerous calls for it to join the local bourse which has been struggling with liquidity. Still in 2017, the bank was fingered in the multimillion financial scandal that relate to the National Petroleum Fund. The Fund’s account were previously held by Stanbic but has since been transferred to its direct competitor FNBB.

Stan chartered Bank Botswana – Just like FNBB, the performance of one of the oldest commercial banks in the country, Standard Chartered Bank Botswana at the capital markets was also under spotlight throughout 2017. Stocks trading figures from the local bourse shows that its share price has been on a slippery mode for the most part of 2017. It closed at a price of 518 Thebe per share on December 12, a 33 percent fall since the December 2016. Historically the bank has had major exposure to the mining sector, and with the slump in commodity prices, the ensuing mine closures, and dampened mining activity, significantly impact on the bank’s profitability. The bank admitted in its latest result that a diamond and jewellery client in 2015, a mining client in 2016 and another diamond and jewellery client in 2017 are all part of the reasons why its profitability went down. Mpho Masupe took over as the top man following the sudden departure of Moatlhodi Lekaukau.

BancABC Botswana – BancABC which delisted from the local bourse a few years back also went through change in management during the year. Kgotso Bannalotlhe joined the bank from its direct competitor when it comes to SMMEs, Barclays Bank Botswana.

Capital Bank Botswana – Until two weeks back, less was said about FMB Capital Holdings Plc’s Capital Bank Botswana. The bank however got mentions in the newspapers when the biggest financial scandal was reported about. Capital Bank Botswana has been labeled as the hero bank that exposed the rot at the National Petroleum Fund. Apart from its heroism, the bank also made headlines when its parent company, Mauritius based FMB Capital Holdings Plc (FMBCH), announced the successful acquisition of a majority shareholding in Afcarme Zimbabwe Holdings (Pvt) Limited – the holding company for Barclays Bank of Zimbabwe Limited (BBZ) from Barclays Bank PLC (BBPLC). 

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