Access Bank Botswana’s profit before tax fell 43% to P34.3 million in the six months ended June 2026, as a P48 million voluntary separation programme pushed up operating costs and weighed on the bank’s reported earnings.
The bank’s unaudited financial statements show that profit before tax declined from P59.9 million in the corresponding period of 2025. However, excluding the once-off separation costs, underlying profit before tax increased 37% to P82 million, according to the bank.
The cost of the workforce restructuring was the main factor behind the deterioration in reported profitability. Personnel expenses rose 49% to P184.4 million, while total operating expenses increased 21% to P335.9 million from P276.5 million a year earlier.
The higher costs came despite stronger revenue generation. Total net revenue increased 10% to P370.3 million, supported particularly by growth in non-interest income. Net trading income more than doubled, rising 114% to P51.8 million from P24.2 million, while net fee and commission income increased 11% to P163.9 million.
The bank’s key financial highlights put non-interest income at P215.7 million, up from P171.5 million in 2025. The increase reflects both stronger trading activity and higher fee and commission income, which the bank attributed partly to increased digital banking adoption and transaction volumes.
Interest income also increased strongly, rising 17% to P506.6 million. However, higher funding costs offset the growth, with net interest income declining 9% to P190.2 million. The bank said increased competition for funding and higher deposit costs continued to put pressure on margins.
Credit performance improved during the period. The net impairment charge fell to P35.7 million from P43.5 million, while the bank’s credit loss ratio improved to 1.0% from 1.28% a year earlier.
The bank continued to expand its lending and deposit base. Gross loans increased to P7.104 billion from P6.803 billion a year earlier, while customer deposits climbed 12% year-on-year to P7.665 billion. Deposits were also 3% higher than at December 2025.
Despite the earnings decline, Access Bank Botswana’s capital position strengthened. Its capital adequacy ratio rose to 19.2% at the end of June from 18.3% in December 2025, remaining well above the 12.5% regulatory minimum.
The bank also declared an interim dividend of 1.52 thebe per ordinary share after the reporting period. The dividend was approved by the board on 27 August 2026 and, subject to regulatory approval, is scheduled to be paid on 16 December 2026.
Looking ahead, Access Bank Botswana said it expects the rollout of AccessMore, its new digital banking platform replacing the SaruMoney retail application, to form part of its second-half strategy.