{"id":193281,"date":"2025-09-03T11:11:54","date_gmt":"2025-09-03T11:11:54","guid":{"rendered":"https:\/\/www.premium-partners.net\/?p=193281"},"modified":"2025-09-04T16:08:55","modified_gmt":"2025-09-04T16:08:55","slug":"dbsa-delivers-record-r5-3bn-profit-despite-weak-economy","status":"publish","type":"post","link":"https:\/\/www.premium-partners.net\/fr\/builder\/dbsa-delivers-record-r5-3bn-profit-despite-weak-economy\/","title":{"rendered":"DBSA delivers record R5. 3bn profit despite weak economy"},"content":{"rendered":"

This post<\/a> was originally published on this site<\/a><\/p>

<\/p>\n

The Development Bank of Southern Africa\u2019s profitability soared in the year ended  March 31, 2025 after net interest income grew and non-performing loans decreased despite \u201cunsatisfactory\u201d local and regional economic growth rates, unfavourable interest rates and geopolitical risk factors.<\/span><\/p>\n

Net interest income <\/span>for DBSA for the year firmed up b<\/span>y 8.6% to R8.4 billion<\/span> while o<\/span>perating income increased <\/span>12.3%<\/span> stronger at <\/span>R8.8<\/span>bn. <\/span>Net profit<\/span>s for the year resultantly grew <\/span>14.4% to R5.3<\/span>bn, a record for the financier, attributable to \u201ca solid increase in net interest income and positive fair value\u201d adjustments.<\/span><\/p>\n

This was partially offset by currency losses reported following the rand\u2019s appreciation against the US dollar. DBSA CEO Boitumelo Mosako said Wednesday that the \u201c<\/span>bank has again delivered strong financial results while advancing the developmental mandate with tangible<\/span>\u201d<\/span> impact<\/span>s<\/span>.<\/span><\/p>\n

\u201c<\/span>The DBSA is accelerating its growth and impact through a ten year strategy<\/span> <\/span>which focuses on capacity enhancing governance, introducing innovative products to unlock trade and investment. <\/span>W<\/span>e do not get funded from taxpayers’ money, so we need to make sure that we make the money to be able to re to deploy<\/span>,\u201d said Mosako during a presentation of the company\u2019s financials.<\/span><\/p>\n

She, however, expects headwinds to persist, with the <\/span>global geopolitical landscape<\/span> likely to <\/span> remain highly dynamic with persistent rivalries, conflicts, and economic uncertainty<\/span>. This was unfavourable as it will shape up <\/span>trade, investment, and development flows<\/span> and dynamics regionally and domestically.<\/span><\/p>\n

\u201c<\/span>These challenges demand a strategic and adaptative approach. The DBSA will continue to safeguard its operations, both resilience, and leverage opportunities as intra African trade and regional partnerships used to de risk projects and drive, sustainable development across southern Africa and the continent<\/span>,\u201d added Mosako.<\/span><\/p>\n

During the period under review, DBSA\u2019s t<\/span>otal development loans and development bonds marginally decreased by 0.5% to R114.6bn <\/span>while t<\/span>otal disbursements <\/span>including <\/span>loans and equities<\/span> <\/span>increased by 2.9% to R17.5<\/span>bn.<\/span><\/p>\n

Its gross non performing loans ratio decreased to 3.2% compared to 3.9% a year earlier. <\/span>Impairment losses <\/span>for the year to March however <\/span>marginally increased to R1.5<\/span>bn while the <\/span>total asset base increased by 2.3% to R121<\/span>bn as at the end of March, m<\/span>ainly due to <\/span>a 39% rise <\/span>cash and cash equivalents to R15<\/span>bn.<\/span><\/p>\n

Appreciation in the rand <\/span>resulted in the gross loan<\/span> <\/span>book net reduction of R860 million<\/span>, with d<\/span>evelopment loan disbursements decreas<\/span>ing <\/span>to<\/span> <\/span>R16.3<\/span>bn. DBSA said South Africa\u2019s <\/span>economic growth rate remains unsatisfactory, with risk factors including long standing structural<\/span> <\/span>constraints such as the port and railway challenges that created bottlenecks and curbed mineral exports.<\/span><\/p>\n

It also cited \u201cw<\/span>eak state<\/span> <\/span>capacity to implement policies negatively impacting business and financial sentiment. In addition, challenges associated<\/span> <\/span>with the US-South Africa relations and early-stage challenges around the Government of National Unity<\/span>\u201d as threatening to further <\/span>constrain economic growth.<\/span><\/p>\n

DBSA chief financial officer Zodwa Mbele explained that <\/span>the economic growth of South Africa<\/span> has <\/span>been very sluggish for the longest time<\/span> and added that this was not <\/span>not giving<\/span> the lender \u201c<\/span>enough opportunities to l<\/span>e<\/span>nd or to provide more intervention<\/span>\u201d through financing development projects.<\/span><\/p>\n

Among the top sectors DBSA was funding is the energy sector which Mbele described as \u201c<\/span> very matured, both in South Africa and other countries,<\/span>\u201d thereby presenting \u201c<\/span>many opportunities to invest<\/span>\u201d in the sector.<\/span><\/p>\n

Municipalities were also another top area for funding for DBSA although the bank was only partnering South African municipalities that are geared to deliver an improvement in service delivery.<\/span><\/p>\n

\u201c<\/span>Municipal credit risk remains elevated, as municipalities continue to face significant<\/span> <\/span>financial distress, with issues such as financial mismanagement, poor service delivery, and budgetary constraints <\/span>remaining prevalent. These challenges call for businesses to re-assess business strategies and evaluate their strategic,<\/span> <\/span>operational and financial vulnerabilities<\/span>,\u201d explained Mbele.<\/span><\/p>\n

It is not just South Africa that is suffering from headwinds. Mbele said its markets elsewhere in Africa have also been affected by sluggish economic growth.<\/span><\/p>\n

BUSINESS REPORT<\/strong><\/p>","protected":false},"excerpt":{"rendered":"

The Development Bank of Southern Africa\u2019s profitability soared in the year ended\u00a0 March 31, 2025 after net interest income grew and non-performing loans decreased despite \u201cunsatisfactory\u201d local and regional economic growth rates, unfavourable interest rates and geopolitical risk factors.Net interest income\u00a0for DBSA for the year firmed up by 8.6% to R8.4 billion\u00a0while operating income increased 12.3%\u00a0stronger at\u00a0R8.8bn.\u00a0Net profits for the year resultantly grew\u00a014.4% to R5.3bn, a record for the financier, attributable to \u201ca solid increase in net interest income and positive fair value\u201d adjustments.This was partially offset by currency losses reported following the rand\u2019s appreciation against the US dollar. DBSA CEO Boitumelo Mosako said Wednesday that the \u201cbank has again delivered strong financial results while advancing the developmental mandate with tangible\u201d\u00a0impacts.\u201cThe DBSA is accelerating its growth and impact through a ten year strategy\u00a0which focuses on capacity enhancing governance, introducing innovative products to unlock trade and investment.\u00a0We do not get funded from taxpayers’ money, so we need to make sure that we make the money to be able to re to deploy,\u201d said Mosako during a presentation of the company\u2019s financials.She, however, expects headwinds to persist, with the global geopolitical landscape\u00a0likely to\u00a0\u00a0remain highly dynamic with persistent rivalries, conflicts, and economic uncertainty. This was unfavourable as it will shape up\u00a0trade, investment, and development flows\u00a0and dynamics regionally and domestically.\u201cThese challenges demand a strategic and adaptative approach. The DBSA will continue to safeguard its operations, both resilience, and leverage opportunities as intra African trade and regional partnerships used to de risk projects and drive, sustainable development across southern Africa and the continent,\u201d added Mosako.During the period under review, DBSA\u2019s total development loans and development bonds marginally decreased by 0.5% to R114.6bn\u00a0while total disbursements\u00a0including\u00a0loans and equities\u00a0increased by 2.9% to R17.5bn.Its gross non performing loans ratio decreased to 3.2% compared to 3.9% a year earlier.\u00a0Impairment losses\u00a0for the year to March however marginally increased to R1.5bn while the\u00a0total asset base increased by 2.3% to R121bn as at the end of March, mainly due to\u00a0a 39% rise\u00a0cash and cash equivalents to R15bn.Appreciation in the rand\u00a0resulted in the gross loan\u00a0book net reduction of R860 million, with development loan disbursements decreasing\u00a0to\u00a0R16.3bn. DBSA said South Africa\u2019s\u00a0economic growth rate remains unsatisfactory, with risk factors including long standing structural\u00a0constraints such as the port and railway challenges that created bottlenecks and curbed mineral exports.It also cited \u201cweak state\u00a0capacity to implement policies negatively impacting business and financial sentiment. In addition, challenges associated\u00a0with the US-South Africa relations and early-stage challenges around the Government of National Unity\u201d as threatening to further\u00a0constrain economic growth.DBSA chief financial officer Zodwa Mbele explained that\u00a0the economic growth of South Africa\u00a0has\u00a0been very sluggish for the longest time\u00a0and added that this was not\u00a0not giving\u00a0the lender \u201cenough opportunities to lend or to provide more intervention\u201d through financing development projects.Among the top sectors DBSA was funding is the energy sector which Mbele described as \u201c\u00a0very matured, both in South Africa and other countries,\u201d thereby presenting \u201cmany opportunities to invest\u201d in the sector.Municipalities were also another top area for funding for DBSA although the bank was only partnering South African municipalities that are geared to deliver an improvement in service delivery.\u201cMunicipal credit risk remains elevated, as municipalities continue to face significant\u00a0financial distress, with issues such as financial mismanagement, poor service delivery, and budgetary constraints\u00a0remaining prevalent. These challenges call for businesses to re-assess business strategies and evaluate their strategic,\u00a0operational and financial vulnerabilities,\u201d explained Mbele.It is not just South Africa that is suffering from headwinds. Mbele said its markets elsewhere in Africa have also been affected by sluggish economic growth.BUSINESS REPORT<\/p>","protected":false},"author":1,"featured_media":193283,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-193281","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-builder"],"_links":{"self":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/193281","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/comments?post=193281"}],"version-history":[{"count":1,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/193281\/revisions"}],"predecessor-version":[{"id":193282,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/193281\/revisions\/193282"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media\/193283"}],"wp:attachment":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media?parent=193281"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/categories?post=193281"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/tags?post=193281"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}