The First National Bank of Botswana (FNNB) will now focus on the model of Customer Centricity as way of moving forward after the bank’s five year journey of focusing on various stakeholders, including staff, shareholders as well as the customers.
The outgoing CEO of FNBB, Lorato Boakgomo-Ntakhwana, said during the presentation of bank’s half year financial results on Friday.
Ntakhwana said through the bank’s three arms being FNB (which offers wholesale and retail banking), Wesbank (which offers vehicles purchasing schemes), and Rand Merchant Bank (corporate segment offering investment facilities), the bank will understand what their clients need before delivering solutions.
“You have to understand you clients first before you can attempt to offer any possible solution,” Ntakhwana said as she gave her last presentation as the CEO of FNBB. In presenting the group’s latest financial results for the half year period ended June 2014, Ntakhwana observed that the bank has delivered a strong set of results considering the economic climate that prevailed during the period under review.
The bank’s balance sheet grew by 12 percent to arrive at P17.6 billion which further imposed FNBB as the number one bank with a market share of around 27 percent. The bank, which has a market capitalisation of P9 billion, has more than 400 000 clients. Ntakhwana said despite the arrival of new players in the market, they have not posed a direct threat to them as FNBB taps into the untapped market while offering various products.
FNBB advances to customers registered a strong growth of 17 percent thereby reaching a historical high P12.9 billion supported by good growth in deposits from customers of 11 percent. Most of the bank’s advances growth was achieved in the secured asset class as the bank moved to a more conservative credit regime.
After the launch of the RMB brand during the financial year, FNBB registered significant growth in the Corporate Segment while the bank’s advances book remained well diversified across all segments.
Ntakhwana noted that despite the 200 basis points reduction in the bank rate during the period between May 2013 and May 2014, total credit extended by commercial banks slowed down from previous years, growing by just 11.7 percent. The fall is said to have been orchestrated by softening of household credit, a new phenomenon in the market according to Ntakhwana, where growth has historically been driven by the household sector.