First National Bank Botswana (FNBB) reported a 6% rise in profit before tax (PBT) to P1.88 billion for the year ended 30 June 2025, up from P1.78 billion a year earlier, as higher lending activity and transaction volumes offset liquidity pressures and weaker deposit growth.
Profit after tax came in at P1.44 billion, a 4% increase from the prior year, while earnings per share rose 4% to 56.7 thebe. The board declared a final dividend of 15 thebe per share, bringing the total payout for the year to 33 thebe, down from 43 thebe in 2024.
The bank’s cost-to-income ratio improved to 47.5% from 49.4%, helped by disciplined expense management and ongoing digital transformation. Return on equity eased to 33.5% from 35.3%, while return on assets was stable at 4.2%.
Advances to customers grew 11% year-on-year to P20.6 billion, supported by corporate lending in the mining, property development, and financial services sectors, while retail loans rose 5%. Deposits, however, fell 12% to P26.5 billion, driven mainly by a 30% drop in corporate balances, reflecting tighter market liquidity.
Non-performing loans declined 20%, bringing the NPL ratio down to 3% from 4% in 2024, highlighting what the bank described as “prudent credit risk management.”
Non-interest revenue surged 12% to P1.78 billion, boosted by a 7% rise in customer numbers and higher transaction volumes across all channels. Interest income rose 6% on the back of a 12% increase in customer loans, while interest expense fell 4% due to changes in the funding mix.
CEO Steven Bogatsu said the performance underscored the bank’s resilience in a “challenging macroeconomic backdrop” marked by weak diamond revenues, fiscal austerity and subdued deposit growth. He added that FNBB would continue investing in digital platforms, SME support programmes and sustainable finance, after recently publishing its Sustainable Finance Framework.
Looking ahead, FNBB warned that the outlook for Botswana’s economy remains pressured by global trade tensions, subdued diamond demand and tighter liquidity, though inflation is expected to remain within the Bank of Botswana’s target range.
Shares in FNBB closed the financial year at 530 thebe, up 8% from 490 thebe a year earlier.