- By Msgi online
The country’s commercial banks recorded collective profits after tax of P529.6 million in the first three months of the year, an increase of more than P77 million compared to the corresponding period in 2021.
The latest figures from the Bank of Botswana released recently indicate that the difference between the two periods was a rise in net interest income and a fall in provisions for bad debts.
The performance of banks in the first quarter of the year continues the sector’s recovery from the hit of COVID-19, which saw their collective after-tax profits decline by 13% in 2020 to reach 1.6 billion pesos before falling. improve to 1.9 billion pesos in 2021. .
The improvement in commercial bank profitability comes as credit growth is also picking up, with total outstanding loans to all sectors reaching P69.6 billion in March, compared to P69.6 billion in February and P65.6 billion pula in March 2021.
Local banks have tightened their credit expansion in response to COVID-19, while appetite for credit products in the local market has also declined due to the impact of the pandemic on economic conditions and disposable incomes .
In March, household debt accounted for 66% of total outstanding commercial bank loans, and within that, 71% was classified as personal loans.
- Msgi online