First National Bank of Botswana showcases impressive financial growth despite rising costs.
FNBB reported a profit before tax of P2.15 billion, an increase from P1.91 billion in the previous year. The bank’s annual profit rose by 14% to P1.65 billion for the year ending June 30, 2026, driven by a 30% surge in non-interest income to P2.31 billion, even as funding costs and credit impairments increased.
FNBB Achieves Strong Profit Growth
First National Bank of Botswana’s profit before tax reached P2.15 billion, reflecting a solid performance amid challenging economic conditions. The bank’s annual profit of P1.65 billion was bolstered by significant growth in non-interest income, which rose to P2.31 billion. This growth helped counterbalance the pressures faced in traditional lending.
Despite a 2% decline in net interest income before impairments to P1.91 billion, the bank managed to navigate rising interest expenses, which surged by 84% to nearly P981 million. The increase in credit impairments, which rose to P191 million from P73.6 million, was attributed to heightened economic uncertainty.
Botswana’s Economic Conditions Impact FNBB
The bank’s operational efficiency improved, with a cost-to-income ratio of 45.4%, down from 47.5%. FNBB’s return on average assets increased to 4.7%, while the return on equity remained robust at 33.2%. The balance sheet showed mixed results, with gross advances to customers declining by 4% to P20.6 billion, while customer deposits grew by 7% to P28.3 billion.
FNBB’s non-performing loan ratio slightly increased to 3% from 2.9%, and the credit loss ratio rose to 0.89% from 0.34%. Total assets increased by 2% to P35.65 billion, supported by a 15% rise in investment securities to P12.46 billion.
Next Steps for FNBB and Shareholders
- Final dividend of 30 thebe per share to be paid on or around 16 October 2026.
- Shareholders registered by 6 October 2026 will receive the dividend.
FNBB’s strong financial results signal a positive outlook for shareholders and the bank’s future.
