Barclays Bank Botswana has released positive full financial results for 2017 with final dividend declared of P180million subject to regulatory approval and the banks profit before tax of P558million a year on year increase of 13% on previous results buoyed by increased loans and advances of P10.7 billion and decrease in credit impairments of 45% year on year.
“We achieved these results while undergoing Barclays PLC’s shares transfer, one of the largest shares transfers on the continent. The successful completion of this transaction demonstrated the confidence the market has in Barclays Africa Group limited and our business ability to realize sustainable return on investment for our shareholder,” said Reinette van der Merwe, Managing Director of Barclays Bank Botswana.
She said, “Further threats to the growth outlook include low fiscal buffers, lower revenues from SACU, continued slow growth in South Africa, and the slow pace of domestic policy reforms.”
According to officials 2017 was a challenging year with GDP growth at 4.7% for 2017 with growth estimated to recover to 5.3% in 2018 owing to a favourable global growth outlook, which should bode well for diamond demand. However net interest income decreased by 1% year on year following the interest rate cuts and operating costs rising 4% in line with the inflation average of 3.3% for 2017 and overall cost to income ratio 52% for the reporting period below the market average of 59.5%.
Customer capital position stood at P2billion representing a 19.8% against the regulatory limit of 15%. The banks liquid assets stood at 15.49% inn comparism to regulatory limit of 10%.
“We introduced a first to market innovation that allows Barclays customers to transfer money directly from their bank account to Orange Money or MyZaka Mascom money accounts through online banking, Barclays Mobile app or Hello Money.
Barclays Africa Group will be ABSA in June – relaunched, represented and with an identity fit for the modern new and forward looking businesses the group is determined to create.
