How FNBB made their 897 million Pula profit

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Table of Contents

• FNBB’s Half-Year Profits: What Young Entrepreneurs …

• 1. Growth Comes from Serving Customers Well

• 2. Smart Financial Management Fuels Success

• 3. Investments in Technology Pay Off

• 4. Risk Management is Key

• 5. Investors Reward Strong Businesses

FNBB’s Half-Year Profits: What Young Entrepreneurs Can Learn

First National Bank of Botswana (FNBB) has reported strong financial results for the six months ending December 31, 2024, with a 14% increase in profit before tax, reaching P1.0 billion, up from P879 million in the same period last year . But what does this mean for young entrepreneurs? Let’s break it down.

1. Growth Comes from Serving Customers Well

FNBB’s non-interest revenue grew by 13% to P892 million, driven by higher customer transactions through services like eWallet, merchant services, and ATM transactions. The bank increased its customer base by 8% and focused on delivering efficient and affordable financial services .

Lesson for Entrepreneurs: The more value you offer customers, the more they engage with your business. Whether through better service, easier transactions, or new solutions, customer experience is key to growth.

2. Smart Financial Management Fuels Success

FNBB kept its cost growth at 8.1%, lower than its income growth of 11%, leading to a lower cost-to-income ratio of 46.3% compared to 47.6% last year .

Lesson for Entrepreneurs: Growing your revenue is great, but keeping expenses under control is just as important. A business that manages costs efficiently has more room for reinvestment and profitability.

3. Investments in Technology Pay Off

FNBB continues to invest in digital banking solutions, making it easier for customers to access services. This includes mobile banking, AI-driven services, and automation .

Lesson for Entrepreneurs: Embracing digital tools can reduce operational costs, improve efficiency, and enhance customer experience. Whether you’re in fashion, SaaS, or retail, integrating digital solutions can boost your business.

4. Risk Management is Key

Despite economic challenges, FNBB’s non-performing loans (NPLs) dropped to 3.5% from 4.5%, showing an improvement in credit performance .

Lesson for Entrepreneurs: Not every sale is a good sale. Ensure you manage credit and risks properly by vetting clients, keeping a close eye on cash flow, and planning for economic downturns.

5. Investors Reward Strong Businesses

FNBB declared an 18 thebe per share dividend, up from 16 thebe last year . This signals confidence in the company’s future.

Lesson for Entrepreneurs: When you run a solid business, investors and stakeholders trust you more. Whether you’re looking for funding or partnerships, a track record of growth and smart financial management makes you more attractive.

Final Thoughts

FNBB’s success is a masterclass in customer focus, financial discipline, technology adoption, risk management, and stakeholder confidence. For young entrepreneurs, these principles can be applied to any business, whether you’re starting a fashion brand, a tech startup, or a retail venture.