Stanbic Bank Botswana reported a 7% decline in profit before tax to P390 million for the six months ended 30 June 2025, as higher funding costs and operating expenses offset solid income growth.
This compares to P420 million posted in the same period last year.
Total income grew 3% year-on-year to P938 million, supported by a 38% rise in non-interest revenue to P365 million. Fee and commission income increased by 15% to P249 million, while trading income surged 50% to P162 million. However, net interest income fell 12% to P573 million, as a 53% jump in interest expenses eroded gains from loan growth and margin management.
The bank’s loan book expanded 15% to P23.9 billion, while customer deposits rose 8% to P22.2 billion, underscoring resilient client activity despite liquidity pressures. Credit impairment charges increased to P37 million, but the credit loss ratio of 0.3% remained well contained, highlighting prudent risk management.
Operating costs climbed 8% to P488 million, largely due to higher staff costs following prior skills realignment and ongoing investment in technology upgrades. This pushed the cost-to-income ratio up to 52.1%, compared with 49.3% a year earlier.
The balance sheet remained strong, with total assets growing 12% to P29.9 billion. Capital adequacy stood at 19.3%, above regulatory requirements, while return on equity moderated to 22.5% from 27.2% in 2024.
CEO Chose Modise said the results reflected resilience in a difficult environment marked by weak diamond exports, market liquidity challenges, and subdued economic growth. “We remain committed to supporting Botswana’s growth by providing solutions that empower SMEs, women and youth-led enterprises, while continuing to invest in digital innovation and customer experience,” he said.