Standard Chartered Bank Botswana (SCBB) saw its half-year 2025 profit after tax plunge 38% to P107.9 million, down from P174.5 million a year earlier, as softer income and higher credit impairments weighed on performance.
Operating income fell 12% to P483 million, driven by a 3% decline in net interest income to P411 million and a sharper drop in non-funded income due to lower transaction volumes in a sluggish economy. Net trading income swung into a P10.8 million loss, compared with a gain of P26.5 million in the prior year.
The bank also recorded credit impairment charges of P55.9 million, a reversal from a P28 million release in June 2024, reflecting pressure from specific clients. This pushed profit before tax down to P139.9 million, compared with P254.5 million a year earlier.
Despite the weaker earnings, SCBB maintained a return on equity of 20.2% and a capital adequacy ratio of 15.2%, comfortably above the regulatory minimum of 12.5%.
Customer deposits rose 11% year-on-year to P14.2 billion, while loans and advances to customers also grew 11% to P8.4 billion, supported mainly by the Corporate and Investment Banking (CIB) segment, where trade facilities expanded sharply.
Operating expenses fell 11% to P287.6 million, reflecting ongoing cost efficiency measures linked to the bank’s digitisation strategy. The cost-to-income ratio stood at 59.5%.
By segment, Wealth and Retail Banking delivered income of P341 million and profit before tax of P101.9 million, while CIB contributed P38 million in profit before tax, weighed down by subdued business activity and a once-off accounting adjustment on interest in suspense.
CEO Mpho Masupe said the results reflected “a challenging operating environment, particularly due to the downturn in the diamond sector,” but emphasised that the bank’s balance sheet and liquidity remained strong.