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FNBB

First National Bank of BotswanaBSM:FNBB Stock Report

Market Cap

P6.3b

7D

0%

1Y

13.2%

Updated

18 Oct, 2021

Data

Company Financials
FNBB fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance3/6
Financial Health5/6
Dividends3/6

FNBB Overview

First National Bank of Botswana Limited provides various banking and related products and services to individuals, businesses, corporates, and private clients in Botswana.

Price History & Performance

Summary of all time highs, changes and price drops for First National Bank of Botswana
Historical stock prices
Current Share PriceP2.49
52 Week HighP0
52 Week LowP0
Beta-0.15
1 Month Change0.81%
3 Month Change13.18%
1 Year Change13.18%
3 Year Change5.96%
5 Year Change-18.09%
Change since IPO514.82%

Recent News & Updates

Shareholder Returns

FNBBBW BanksBW Market
7D0%0.8%0.1%
1Y13.2%29.5%1.3%

Return vs Industry: FNBB underperformed the BW Banks industry which returned 29.5% over the past year.

Return vs Market: FNBB exceeded the BW Market which returned 1.3% over the past year.

Price Volatility

Is FNBB's price volatile compared to industry and market?
FNBB volatility
FNBB Beta-0.15
Industry Beta0.68
Market Beta1

Stable Share Price: FNBB is more volatile than 75% of BW stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: FNBB's weekly volatility (3%) has been stable over the past year, but is still higher than 75% of BW stocks.

About the Company

FoundedEmployeesCEOWebsite
19911,400Steven Bogatsuhttps://www.fnbbotswana.co.bw

First National Bank of Botswana Limited provides various banking and related products and services to individuals, businesses, corporates, and private clients in Botswana. The company offers cheque, transactional savings, student, youth, and business accounts; call accounts, notice and fixed deposits, treasury bills, and bonds products; overdrafts; personal, tertiary, graduate, home, and business loans, as well as vehicle and asset, commercial property, purchase order, and corporate finance services; firstfunding employee loan schemes; and credit and debit cards. It also provides foreign exchange solutions; Islamic finance and financial planning services; forex and trade services, such as payment, and import and export solutions; and accounting and custody services.

First National Bank of Botswana Fundamentals Summary

How do First National Bank of Botswana's earnings and revenue compare to its market cap?
FNBB fundamental statistics
Market CapP6.33b
Earnings (TTM)P685.18m
Revenue (TTM)P2.13b

9.2x

P/E Ratio

1.6x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FNBB income statement (TTM)
RevenueP2.13b
Cost of RevenueP0
Gross ProfitP2.13b
ExpensesP1.45b
EarningsP685.18m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.27
Gross Margin100.00%
Net Profit Margin32.14%
Debt/Equity Ratio39.4%

How did FNBB perform over the long term?

See historical performance and comparison

Dividends

6.0%

Current Dividend Yield

56%

Payout Ratio

Valuation

Is First National Bank of Botswana undervalued compared to its fair value and its price relative to the market?

9.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FNBB (BWP2.49) is trading above our estimate of fair value (BWP2.15)

Significantly Below Fair Value: FNBB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FNBB is poor value based on its PE Ratio (9.2x) compared to the African Banks industry average (6.5x).

PE vs Market: FNBB is good value based on its PE Ratio (9.2x) compared to the BW market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FNBB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FNBB is overvalued based on its PB Ratio (1.6x) compared to the XF Banks industry average (0.9x).


Future Growth

How is First National Bank of Botswana forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.2%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as First National Bank of Botswana has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has First National Bank of Botswana performed over the past 5 years?

6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FNBB has high quality earnings.

Growing Profit Margin: FNBB's current net profit margins (32.1%) are higher than last year (31.9%).


Past Earnings Growth Analysis

Earnings Trend: FNBB's earnings have grown by 6.9% per year over the past 5 years.

Accelerating Growth: FNBB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FNBB had negative earnings growth (-1.5%) over the past year, making it difficult to compare to the Banks industry average (11%).


Return on Equity

High ROE: FNBB's Return on Equity (17.4%) is considered low.


Financial Health

How is First National Bank of Botswana's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: FNBB's Assets to Equity ratio (7.2x) is low.

Allowance for Bad Loans: FNBB has a sufficient allowance for bad loans (113%).

Low Risk Liabilities: 90% of FNBB's liabilities are made up of primarily low risk sources of funding.

Loan Level: FNBB has an appropriate level of Loans to Assets ratio (49%).

Low Risk Deposits: FNBB's Loans to Deposits ratio (63%) is appropriate.

Level of Bad Loans: FNBB has a high level of bad loans (7.2%).


Dividend

What is First National Bank of Botswana current dividend yield, its reliability and sustainability?

6.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FNBB's dividend (6.02%) is higher than the bottom 25% of dividend payers in the BW market (4.27%).

High Dividend: FNBB's dividend (6.02%) is low compared to the top 25% of dividend payers in the BW market (7.98%).


Stability and Growth of Payments

Stable Dividend: FNBB's dividend payments have been volatile in the past 10 years.

Growing Dividend: FNBB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.7%), FNBB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Steven Bogatsu (49 yo)

6.42yrs

Tenure

P3,954,100

Compensation

Mr. Steven Lefentse Bogatsu serves as the Chief Executive Officer of First National Bank of Botswana Limited since May 1, 2015. Mr. Bogatsu served as the Chief Financial Officer at First National Bank of B...


Leadership Team

Experienced Management: FNBB's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: FNBB's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

First National Bank of Botswana Limited's employee growth, exchange listings and data sources


Key Information

  • Name: First National Bank of Botswana Limited
  • Ticker: FNBB
  • Exchange: BSM
  • Founded: 1991
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: P6.334b
  • Shares outstanding: 2.54b
  • Website: https://www.fnbbotswana.co.bw

Number of Employees


Location

  • First National Bank of Botswana Limited
  • First Place
  • Plot 54362
  • Gaborone
  • Botswana

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 21:37
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.