Africa-Press – Botswana. BBS Bank has reported a profit after tax of P38.4 million for the financial year ended 31 December 2024, marking a notable turnaround from a loss of P21.3 million in 2023.
This is the bank’s first profit since its demutualisation in 2018.
In the BBS Bank latest Integrated Report 2024, Managing Director Padzani Tafa states that the Group remains committed to implementing its Corporate Strategy, which is designed to steer the institution through its ongoing transition and into future growth.
Enhanced shareholder value
The strategy includes transformation initiatives intended to expand the business and improve performance. “Central to this strategic roadmap is the unwavering focus on generating enhanced shareholder value,” Tafa noted.
She added that the bank made progress during the reporting period on key projects aimed at enhancing banking capabilities and competitiveness.
According to the report, the return to profitability was largely driven by a P11.5 million gain from the sale of one of the bank’s properties. But even after adjusting for this one-off item, the bank posted a profit of P26.9 million, still marking an improvement from the previous year’s performance.
Evolving economic conditions
“This improved performance is primarily attributed to the P11.5 million profit from the sale of one of the bank’s properties,” Tafa said. “Excluding this item, the adjusted profit stands at P26.9 million.”
Looking ahead, Tafa emphasised the importance of responding to changing customer expectations and evolving economic conditions.
She noted that BBS Bank is positioning itself as a key player in mass-segment banking, offering services such as digital banking, personal and building loans, insurance, savings and current accounts (including youth and business accounts), as well as foreign exchange.
Competitive pressures
“We are committed to becoming a household name catering for mass-segment banking customer needs,” she said.
Tafa acknowledged the competitive pressures facing the institution, particularly as Botswana’s first and only home-grown commercial bank.
“If we do not meet the needs of our customers, other banks whose supremacy we are challenging will most assuredly push us to the rear,” she said.
However, she expressed confidence in the bank’s trajectory, crediting a combination of “hard work, good management, patience, forethought and shrewd business decisions” for the improved financial performance.
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