Access Bank Botswana posted lower earnings for the year ended December 2025 after higher loan impairments and funding costs offset strong growth in digital banking income and an expanding loan book.
The lender’s profit before tax declined 23 percent to P103.6 million from P134.6 million a year earlier, while after-tax profit fell 20 percent to P79.9 million. The weaker performance came despite a six percent rise in interest income and strong growth in non-interest revenue, underscoring the difficult operating environment facing Botswana’s banking sector.
Net interest income dropped 11 percent to P368.8 million as elevated funding costs squeezed margins in a market characterised by tight liquidity. At the same time, impairment charges more than doubled to P80.2 million, reflecting increasing stress on borrowers amid sluggish economic conditions.
The bank, however, continued to diversify its income streams. Non-interest income climbed 26 percent to P373.8 million, supported by increased digital banking activity, while trading income surged 117 percent on the back of higher transaction volumes. Fee and commission income also rose 12 percent.
Access Bank expanded lending during the year, with gross loans increasing to P6.75 billion from P5.95 billion, while customer deposits grew three percent to P7.48 billion. Total assets rose seven percent to P10.8 billion, signalling continued balance sheet growth despite the challenging environment.
Although its capital adequacy ratio declined to 18.3 percent from 21.7 percent, it remained comfortably above the regulatory minimum of 12.5 percent, leaving the bank well-capitalised for future expansion.
Management said it remains optimistic about Botswana’s medium-term prospects and plans to deepen digital banking through platforms such as Primus+, while continuing to support small businesses and improve operational efficiency. The bank expects digital innovation and disciplined funding management to underpin future growth.