The BIHL Group CEO, Catherine Lesetedi
The BIHL Group CEO, Catherine Lesetedi|Source: The BIHL Group
Press Releases (The BIHL Group)

Bifm Champions Pleasing Performance with Innovative Solutions

By Kabelo Binns


04 September 2020

GABORONE – The Botswana Insurance Holdings Limited (BIHL) Group shared their financial results for the half year ended June 2020 before stakeholders at Avani Gaborone Resort & Casino on the 2nd of September 2020. The leading financial services Group’s asset management business delivered satisfactory set of results despite a seemingly uncertain market environment for the period.

The overall operating profit for the Bifm Group showed a 12% year-on-year decline. However, the Botswana business performed exceptionally well despite the market conditions with an 87% increase in operating profit before tax which was mainly driven by higher management fees and lower administration expenses. The increase in management fees is largely attributed to the assets under management, which increased by 8% to P30.5 billion in comparison to the previous year. This number includes the P4.2 billion managed by Bifm’s Zambian business, Aflife Zambia which displayed resilience despite the challenging economic environment due to lower investment management fee rates and the depreciation of the Kwacha. Bifm Unit Trust on the other hand noted stellar results with a 15% increment in operating profit compared to the previous year.

The BIHL Group CEO, Catherine Lesetedi, said, “The first half of the quarter was definitely a challenging year for the asset management business. Despite the hostile market environment, Bifm not only persevered the market headwinds but closed the interim period with a robust set of financial results. This speaks to a stronger performance than that of the previous year in many respects and bears testament to the resilience of the Bifm team to derive shareholder value in the face of unprecedented challenges.”

In addition to Bifm’s performance, the investment management business introduced two new Unit Trust funds, expanding its Unit Trust’s portfolio to five products. The business launched the Bifm Letlotlo Education Fund, which is a bond and cash security investment enabling investment towards educational needs. The second product launch was the Bifm Ya Masa Junior Fund which is an equities investment targeted at instilling a savings culture in the younger demographic market. The introduction of the new Unit Trust funds is underpinned by the Bifm’s 5-year Strategy, with an aggressive focus on customer value, customer centric solutions, organisational capability and efficiency.

Said the Bifm CEO, Neo Bogatsu: “As the Nation’s largest investment manager, we have a responsibility to reinvent our product offering and offer customer centric solutions that best address the changing needs of the current market. The launch of our two new unit trust funds are in alignment with our long term investment approach to further leverage existing resources and introduce new products in the market to derive greater value for our clients and shareholders. Looking onwards, we remain dedicated to deriving value for all of our shareholders to ensure our continued progress and growth well into the future.”

The BIHL Group’s results features strong increments in earnings across the board. Operating profit increased by 17% to P202 million, while core earnings increased by 7% to P203 million. Profit attributable to equity holders significantly increased by increased by 45% to P264 million. The Group remains well positioned in terms of capital management and solvency. This was taken into consideration by the Board when resolving a final interim dividend.

The Directors of the BIHL Group have resolved to award a final dividend for the year of 57 thebe gross of tax.


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