Stanbic Bank Botswana kept earnings largely unchanged in 2025, as strong growth in trading and fee income offset a sharp squeeze on lending margins in a year defined by tight liquidity and elevated funding costs.
Profit before tax edged up to P951.7 million from P949.7 million, while profit after tax rose slightly to P709.7 million. Stability at the headline level masked significant shifts in the bank’s income mix.
Net interest income fell 21.7 percent to P1.07 billion, as interest expenses surged 86.1 percent to P957.2 million, reflecting intense competition for deposits. The net interest margin narrowed to 3.7 percent from 4.9 percent, underscoring the pressure on traditional lending.
Non-interest income provided the offset. Revenue from trading, fees and commissions rose 62.5 percent to P941.6 million, driven by stronger performance in Global Markets, higher trade volumes and increased foreign exchange activity.
The shift was partly supported by changes in currency market dynamics after the Bank of Botswana widened the pula trading band in July 2025, boosting interbank foreign exchange activity and reducing reliance on the central bank.
Balance sheet growth remained subdued. Total loans and advances declined 9 percent to P21.3 billion, while customer deposits fell 2.1 percent to P22.7 billion, reflecting a more cautious approach to lending in a high-cost funding environment.
Asset quality showed some strain, with credit impairment charges rising to P84.6 million, though cost discipline improved. The cost-to-income ratio fell to 48.6 percent, and operating cash flow strengthened significantly.
The results highlight a shift in earnings drivers, with market activity increasingly compensating for pressure on core lending in a constrained liquidity environment.