Africa-Press – Botswana. BBS Bank Limited recorded a loss after tax of P113.3 million for the year ended 31 December 2025, a sharp reversal from a restated profit of P38.1 million in 2024, according to the Bank’s recently released financials.
Financial Performance
The Bank attributed the decline primarily to a surge in interest expense driven by heightened competition for deposits and a sharp rise in credit impairments amid a challenging economic environment. Additionally, a once-off impairment of a non-financial asset linked to the CBD Head Office Work in Progress and lower non-interest income weighed on results.
“Despite these challenges, total assets remained stable at P5.6 billion, deposits grew modestly, and all regulatory ratios were maintained above prescribed minimums,” the Bank said.
Balance Sheet
The Group’s total assets saw a marginal 0.8 percent increase to P5.6 billion as at 31 December 2025, up from a restated P5.6 billion in 2024. Loans and advances remained stable at P4.6 billion. In response to tight market liquidity, the Bank prioritized portfolio quality over growth, a strategy that put pressure on net interest income. Deposits increased to P4.6 billion from P4.5 billion, supported by retail and corporate segments.
Borrowings fell to P199.5 million from P256.0 million, reflecting scheduled repayments, while debentures remained largely stable at P204.5 million. The Bank also raised an additional P50 million Tier II capital facility to strengthen its capital position. Shareholder equity declined from P528.2 million to P414.9 million, and accumulated losses moved from a positive P40.8 million to a deficit of P72.5 million.
Profitability Metrics
Net Interest Income (NII) fell 31.5 percent to P144.0 million from a restated P210.1 million. Interest income grew 15.9 percent to P556.0 million, but interest expense surged 52.9 percent to P412.0 million, compressing margins. Net fee and commission income rose modestly by 4.4 percent to P35.3 million, with fee income increasing to P36.7 million and fee expenses to P1.5 million. Other income declined sharply from P16.7 million to P2.9 million due to the absence of prior-year gains from property disposals and lower dividend income.
Regulatory Ratios
The Capital Adequacy Ratio (CAR) stood at 19.74 percent, down from 23.63 percent in 2024, but well above the Bank of Botswana’s 12.5 percent minimum. The Non-Performing Loans (NPL) ratio rose from 5.23 percent to 6.28 percent. The Cost-to-Income Ratio worsened to 120.6 percent from 72.3 percent, while the Loans-to-Deposit Ratio improved slightly to 101.1 percent from 103.5 percent.
Outlook
The Bank emphasized its focus on expanding current and savings accounts to optimize funding, along with maintaining disciplined credit management.
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