Access Bank Botswana has finally released its audited 2025 financial statements after months of delay, with the audit revealing regulatory non-compliance that resulted in breaches of borrowing covenants and prompted an independent investigation commissioned by the bank's board.
The lender announced on Tuesday that its audited financial statements had been completed and released, confirming that the previously reported unaudited profit before tax of P103.5 million for the year ended December 31, 2025 remains unchanged.
However, the accompanying independent auditor's report by PricewaterhouseCoopers sheds light on why publication of the results was delayed.
PwC identified "instances of regulatory non-compliance and consequential impact on borrowing covenants" as one of the two key audit matters requiring significant attention during the audit.
According to the audit report, the issues centred on an investment made on December 29, 2025, when the bank invested in a senior note issued by New Horizon Funding SPV Ltd. The note had a notional value of US$20 million and was carried at P261.1 million at year-end.
PwC said its audit procedures identified potential regulatory non-compliance and accounting errors in the initial recording of the transaction, findings that were escalated to those charged with governance.
The auditors noted that the board subsequently commissioned an independent investigation into the matter, whose conclusions they said they were able to rely on for purposes of the audit.
Following that investigation, PwC performed additional audit procedures and said these identified "further instances of regulatory non-compliance".
The report says the regulatory breaches had broader implications for the bank's financing arrangements.
"Based on the terms of the borrowing agreements and the regulatory non-compliances identified," PwC concluded that covenant breaches had occurred before the reporting date. As a result, certain borrowings had to be reclassified from non-current liabilities to current liabilities because the bank did not have an unconditional right to defer settlement for at least 12 months after the reporting date.
Despite the issues identified, PwC issued an unmodified audit opinion, concluding that the financial statements present a true and fair view of the bank's financial position in accordance with IFRS Accounting Standards.
The audit also identified expected credit losses on loans and advances as another key audit matter. Gross customer loans subject to expected credit loss modelling stood at P6.75 billion at year-end, against which the bank recognised an impairment allowance of P297.4 million. PwC said it independently tested the methodology and concluded that management's estimate fell within an acceptable range.
Alongside the publication of the audited results, Access Bank announced that KPMG Botswana has been appointed as its external auditor for the 2026 financial year, replacing PricewaterhouseCoopers following what it described as a comprehensive auditor selection process. The bank said the change reflects its commitment to governance, auditor independence and strengthening its financial reporting framework.