Botswana Savings Bank (BSB) has reported a strong financial performance for the year ended March 31, 2025, with net profit surging by 230% to P76.8 million, up from P23.3 million the previous year.
The bank’s record-breaking earnings cap off the final year of its Lesedi Strategy (2022–2025), a three-year transformation plan to position BSB as a competitive, locally-owned financial services provider.
According to the bank’s financial results released this week, the performance was underpinned by strong growth in interest income and customer deposits, as well as a significant contribution of P24.4 million from its subsidiary, BSB Insurance Services.
Net interest income climbed 80% year-on-year to P312 million, boosted by an aggressive recalibration of the bank’s sales strategy. This included expanding the direct sales agency network, increasing maximum loan thresholds, and extending loan tenures. As a result, net advances to customers rose sharply by 63% to P4.4 billion. Customer deposits also increased by 63% to P4.1 billion.
The bank also maintained a healthy capital adequacy ratio (CAR) of 16.6%, well above the 12.5% regulatory minimum, thanks in part to the successful issuance of a P50 million Tier II bond in December 2024.
“Our transformation strategy has delivered both commercially and operationally,” said BSB CEO Nixon Marumoloa in a statement. “We are proud of the milestones reached, and the results underscore the dedication of our team and the trust placed in us by our customers.”
Return on equity (ROE) doubled to 22% from 9% the previous year, reflecting improved profitability and more efficient use of capital. Meanwhile, the bank’s liquidity asset ratio stood at 11%, comfortably above the 10% regulatory threshold.
Despite a challenging macroeconomic backdrop that saw Botswana’s GDP contract by 3% in 2024, BSB expects to meet or surpass its financial targets in the new fiscal year. The bank says ongoing digital transformation efforts will further improve operational efficiency and unlock new revenue streams.
BSB also confirmed that discussions around the government’s plans to privatise the bank are ongoing. “While these discussions continue, our focus remains on commercialising the bank and preparing it for eventual privatisation,” said Marumoloa.