· Posts 14% profit
· Hail collections strategy
· MD aims for P100m after tax profit next year
Capital Bank, one of the unlisted commercial banks in Botswana, this week published its audited financial results for the year ended 31 December, 2017 showing an increase of 14 percent in profit for the year.
The bank CEO Jaco Viljoen said on Wednesday that there has been consistent growth in the company year-on-year which has been driven by the way the bank does its things including their debt collection strategy.
He said in the process, they have been able to reduce non-performing loans. The bank strategy, which is focused a customised service for business market with a lesser focus on retail banking and building mass infrastructure, is said to be paying off as Capital Bank profits grow year-on-year.
During the year, Capital bank registered P27.3 million profit; up from P23.8 million registered in the previous year.
The bank’s loan and advances to customers reached P1 billion in 2017 while deposits from customers went over P1.8 billion.
Capital bank, which first opened in doors in Botswana in 2008, is majority owned by Malawi’s publicly listed bank, First Merchant Bank which has since diluted its shareholding to 38.6 percent with local shareholders.
Addressing stakeholders this week, Viljoen said their focus going forward will be to retain their current strategy and customer focus. The bank has also set it target to reach profit after tax of P100 million by 2019 as well as maintaining a market share of 5 percent in terms of profit after tax.
Viljoen said Capital Bank would also look to grow its assets to P3.5 billion.
He said these would be driven by factors such as relationship banking, bigger transacting customer base through payments and trade, improved loan products through asset based finance and payroll retail loans and improved control.
In terms of the industry in general, Viljoen said the market in 2018 has had a good start, but the environment is tough withy low interests rates countered by low growth in liquidity.
Viljoen said for them as Capital Bank, they would want to retain focus on commercial and business banking markets as well as emphasis on quality service and turnaround time in order to grow quality loan book and deposits, grow transactional volumes and grow trade business.
Though the bank’ balance sheet and revenues increased during the year, Viljoen said they have also managed their cost growth, which in the long run ensures Capital Bank remains a sustainable business and able to continue driving overall growth.
He said their position has always been about building a sustainable operation and the Board has taken a conservative approach over the years to accommodate this Capital Bank of Botswana has an independent board of seven, of which six are resident in Botswana, allowing a localised approach to decision-making.
Since its establishment, the bank has continuously grown and is currently employing 130 staff members, with more than 95 percent of them being citizens of Botswana. Capital Bank has four branches in central Gaborone, Mogoditshane, Broadhurst and Francistown.