First National Bank Botswana says growth in digital services helped cushion its performance by rising funding costs and tighter liquidity across the financial sector. The bank reported profit before tax of P1.0 billion for the six months to December 31, 2025, largely unchanged from the same period the previous year, reflecting what executives described as a cautious approach in a difficult operating environment.
Chief executive Steven Bogatsu said the lender continues to see strong uptake of its e-wallet platform, which remains central to its financial inclusion strategy. E-wallet transactions rose from 8.8 million to 9.7 million during the period, a 10 percent increase. The value of those transactions climbed 15 percent to P86 million from P75 million, even as mobile money operators intensify competition in the payments space.
Bogatsu said demand for the service is being driven largely by unbanked and underbanked communities, particularly in rural Botswana.
‘Financial exclusion, especially in rural areas, continues to support growth in the e-wallet platform,’ Bogatsu said.
He added that the bank’s agent network is increasingly spread across the country, with 41 percent operating in rural areas and 51 percent in urban centres.
On the financial front, net interest income rose 15 percent to P1.4 billion, supported by a four percent increase in advances and a 100 basis point increase in the prime lending rate.
However, higher funding costs weighed on margins. Interest expenses more than doubled year on year as term deposit rates climbed from about four percent to an average of 10 percent. Non-interest income increased 47 percent to P1.3 billion, helping lift total income by six percent to P1.99 billion. The bank also increased impairment provisions to P221 million as it sought to protect its loan book against rising credit risks.