Pan African bank BancABC which is listed on the Botswana Stock exchange (BSE) has said income across all operations and a particularly strong performance from operation in Botswana and Mozambique ensured the group’s profitability.

The Zimbabwe market also showed a strong feat as it turned its fortunes around with a strong performance after almost 10 years of non growth. According to the chief executive, Doug Munatsi Zimbabwe was coming from virtually a low base but managed to record a positive economic trend for the first time in 10 years. He said Zimbabwe operations growth was on the backdrop of significant economic improvement due to the formation of the Government of National Unity and the dollarisation of the currency. “With the end of hyperinflation and subsequent stabilisation of the economy, BancABC Zimbabwe grew its business across most business units. Net interest income stood at P14 million compared to a nil in 2008.”

Munatsi, however, added that despite the significant improvement in the business environment, there is still a problem of lack of liquidity in the banking sector and an inactive interbank market and limited foreign direct investment.

Last year the group changed its brand from African Banking Corporation (ABC Bank) which was a reflection of the group’s growth and transformation to open its retail business. The bank had announced plans to open new retail branches in the Southern African Development Community (SADC) region.

The wholesale banking group has asserted that will this year roll out the retail banking business across all territories. Munatsi asserted that the group’s background gave it solid platform to continue its growth. The group’s expansion into retail banking made real progress in 2009, as significant investments were made in people, systems and capital and the division was ready to become fully operational. “The first branch was opened in Harare in late 2009 and subsequently in Dar es Salaam in March 2010. Branches are expected to be opened in Maputo and Gaborone shortly. Visa accreditation has been obtained in Botswana, Mozambique and Tanzania.”

Botswana will open two branches in Gaborone as reports have indicated the refurbishment of its CBD Branch in Gaborone has been completed and will soon be ready to open to the public. The bank’s main branch is tipped to be located at the Fairgrounds where its headquarters are currently under construction which is expected to be complete by May. Munatsi also highlighted that they have identified the building that formerly accommodated First National Bank Botswana (FNBB) for their Francistown branch, along the main street, Blue Jacket, which should provide great visibility. “We expect to open branches in Botswana by the second quarter and Zambia to follow in the third quarter, and we want a total of 10 branches to be opened by half year.”

Despite the country’s population Botswana has experienced high banking penetration and Munatsi has said he is confident BancABC will demonstrate aptitude to claim its market share. He said all the branches are expected to be profitable between 18 and 24 months. “We will have to penetrate the market with new innovation and focus on distribution channels to achieve optimum value and also focus on service delivery.”

Opening of BancABC retail arm will bring the number of commercial banks in Botswana to eight.

BancABC, has a strong shareholding from Botswana entities, including Botswana Insurance Fund Management (BIFM) and Debswana Pension Fund while the rest are foreign entities.

Insiders have said the bank intended to convert six branches of 18 of its micro lending outfit, Microfin, into retail branches of BancABC.

Despite the challenges in the group’s operating markets total income grew by 10 percent to P392 million and managed to record a solid profit of P58 million, though it was 30 percent decline on 2008 earnings, the results were regarded as sound considering the serious economic challenges. The bank’s overall performance was negatively impacted by the results of its Zambian banking operations, which recorded a P45 million loss.

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