Absa Bank Botswana has delivered a strong first-half performance, recording an 18% increase in profit for the period to P376 million, signalling resilience in a domestic economy still grappling with weak diamond markets, inflationary pressures and fiscal constraints. This was reflected today in Gaborone at Protea Hotel, where economists, industry leaders and media gathered for the bank’s results.
The bank’s 2026 interim results, released on 15 September, show that total income increased by 14% to P1.3 billion, while earnings per share rose 21% to 0.46 thebe. Return on equity also strengthened significantly, rising from 20.3% in the comparable period to 21.8%, demonstrating improved value creation for shareholders.
The performance comes against a difficult economic backdrop. Botswana’s real GDP grew by 3.5% year-on-year in the first quarter of 2026, but mining GDP contracted by 11.3%, while inflation averaged 7.3% during the first half of the year.
Against this environment, Absa appears to have strengthened its earnings engine beyond traditional interest income.
Net interest income declined by 4% to P727 million, but net fee and commission income increased by 7% to P284 million. The bank also reported broader growth in non-core revenue streams, helping to support the overall earnings performance.
Operational efficiency was another highlight. The cost-to-income ratio improved from 57.4% to 52.1%, despite operating expenses increasing by only 4% to P671 million.
However, the results also reveal areas requiring caution. Customer loan advances fell marginally by 1% to P18.1 billion, while expected credit losses rose sharply to P136 million, with the loan-loss ratio increasing to 0.73%. This suggests the bank is taking a more cautious view of credit risk amid prevailing economic uncertainty.
At the same time, customer deposits increased by 4% to P19.8 billion, strengthening the bank’s funding position. Its Tier 1 capital ratio stood at 18%, while the bank said its capital and liquidity requirements remained comfortably met.
Managing Director Keabetswe Pheko-Moshagane said the first-half performance demonstrates the underlying strength of the institution.
“Our progress in 1H26 underscores the strength of our business, the resilience of our franchise, and our ability to create sustainable long-term value.”
Pheko-Moshagane said the bank would continue focusing on disciplined lending, prudent risk-taking, revenue diversification and maintaining a resilient balance sheet.
Beyond its financial performance, Absa is also positioning itself as a contributor to wider economic activity. The bank says it supported more than 2,100 participants through SME capacity-building initiatives and extended more than P96.6 million in financing to SMEs.
The message from the results is therefore twofold: Absa is performing strongly, but it is doing so in an economy that remains uneven and exposed to significant risks.
