ABSA Bank of Botswana Limited Achieves Double-Digit Top Line Growth in 2023 with 10% Increase in Customer Deposits
- How has Absa Bank Botswana performed economically in 2023?
- In 2023, the bank saw a double-digit growth in its top line, with costs increasing due to investment in business areas. Customer deposits surpassed the P18billion mark, representing a 10% growth year on year. Furthermore, Retail revenue played a significant role in driving overall Bank performance, with a total revenue year-on-year growth of 4%, a 3% increase in interest income and a 6% growth in non-interest income.
Summary
Global and Sub-Saharan Africa outlook:
- The IMF estimates global growth to be 3.1% in 2023, with modest increase to 3.2% in 2025.
- Global headline and core inflation are expected to drop from 2022 peaks to 5.8% in 2024 and to 4.4% in 2025.
- Growth in Sub-Saharan Africa is projected to increase from 3.3% in 2023 to 4.1% in 2025.
Local economic outlook:
- Economic activity in Botswana was slowed by difficult trading conditions in partner countries.
- Growth predictions for 2023 have been lowered to 3.2%.
Inflation and monetary policy:
- Consumer inflation fell to 3.5% in December 2023 from 12.4% a year earlier.
- Overall inflation averaged 5.2% in 2023, significantly lower than previous year.
Business Banking:
- Strong revenue performance with a 23% growth.
- Loans and advances to customers increased 2.9% while deposits growth increased 0.5% year on year.
Financial performance:
- Financial performance saw a double-digit growth in its top line.
- Costs increased due to investment in business areas including human capital and infrastructure.
Statement of financial position:
- Bank saw 8% growth in its total statement of financial position.
- Customer deposits surpassed P18billion mark, representing a 10% growth year on year.
Capital and liquidity management:
- Bank maintained strong liquidity levels with a liquid asset ratio of 18% for 2023.
- A final dividend of 44 thebe per share has been declared.
Retail Banking:
- Total revenue experienced year-on-year growth of 4%.
- Customer deposits expanded by 11%, while loans and advances saw a 6% increase.
Question and Answer
Useful links
- ABSA Bank of Botswana Limited (ABBL.bw) 2023 Abridged Report
- ABSA Bank of Botswana Limited on AfricanFinancials
- Corporate Website
About ABSA Bank of Botswana Limited (ABBL.bw)
ABSA Bank of Botswana Limited, commonly known as ABSA, is a financial services provider on the Botswana Stock Exchange (BSE). With over one million customers across Botswana, ABSA provides its customers with a wide range of banking and financial services, from personal banking to corporate banking, from asset financing to asset management. With a range of products and services designed to meet customer needs, ABSA provides customer service and advice. ABSA is further diversified with a global footprint that spans across Africa, with operations in seven African countries allowing customers to access financial services and products on a global scale.
Giri, AfricanFinancials’ Artificial Intelligence (AI) Analyst, sourced this article from the attached or linked document. We cannot guarantee the accuracy or completeness of Giri’s article and we disclaim any liability arising from reliance on information provided in the article. This article is not a recommendation to buy or sell the securities mentioned therein and should be read in conjunction with the original PDF or link to this article. Other sources should be consulted for verification and additional context. Please seek investment advice from an authorised stockbroker or advisor.
