Access Bank Botswana – FY 2021 PBT expected to decline by between 75% to 85%

By Published On: March 14th, 2022Categories: Corporate announcement

The Listing Requirements of the Botswana Stock Exchange requires the Board of Directors of Access Bank Botswana Limited (“Access Bank” or the “Company”) to announce any events or circumstances that may have a material impact or deviation in the soon to be reported company’s performance from the prior applicable financial period. The Board hereby informs shareholders and stakeholders that the Company’s profit before tax for the year ended 31st December 2021 are expected to reduce by about 75% to 85% compared to the corresponding period. This translates to an expected Profit Before Tax for the year ended 31st December 2021 of P18 million to P30 million, compared to the restated P119 million for the corresponding prior period.

BACKGROUND

During the beginning of the second quarter of 2021, the Company announced the acquisition of BancABC Botswana by Access Bank PLC, because of which the Company embarked on an accelerated program to fulfil the conditions precedent and achieve legal ownership transfer which was completed by the beginning of October 2021. As a result, the Company performance has been impacted by certain non-recurring write-offs as well as integration costs consistent with transitions of this nature.

Overall, the Company’s underlying business performance is steady, which is reflected in increases in lending and deposits compared to the prior period. Additionally, the Non-Interest Revenue performance for the reporting period indicates that the underlying business continues to maintain satisfactory progress.

In line with the recently approved five-year strategy for growth, Access Bank Botswana’s focus is to rapidly expand and diversify the business. The Company has already begun a P200m investment programme, enhancing its distribution footprint, leveraging Group digital assets to move beyond a lending dominated book into a full-service digital banking ecosystem with diversified revenue lines. In this regard, it is pleasing to report that strategic implementation began immediately upon achievement of ownership transfer including bolstering execution capacity. Access Bank PLC has designated Botswana a key market it intends to succeed in and will fully support the Company to achieve its stated business objective in the shortest space of time, leaning upon its track record of success. The Company expects these developments to become immediately visible within the first half of 2022 and to begin being accretive to earnings in the second half of 2022.

Shareholders should note that the financial information on which this trading statement is based has not been reviewed or reported on by the external auditors. The full details will be provided to shareholders at the announcement of the full-year financial results for the period ended 31st December 2021, due to be released on or before 31st March 2022. Accordingly, shareholders are advised to exercise caution when trading in the Company’s securities until a full announcement is made.

By Order of the Board of Directors

 

The contents of the post above were obtained from third parties, which We, AfricanFinancials, believe to be reliable. However, We do not guarantee their accuracy and the above information may be in condensed form. The reader is encouraged to refer to the original source of the information, which, in most cases, is in PDF format and on the originating company's letterhead. While We endeavour to replicate the original content accurately, We cannot guarantee the absence of errors in the above article and We disclaim any liability regarding reliance on information provided in this article.

Access Bank Botswana Limited (ACCESS.bw)

Share price: 204.00 Thebe (0.00 | 0.00% – 07/11/24)

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