NBFIRA Annual Statistical Bulletin 2021

NBFIRA 1/9/6-I (26)                                                                                                   June 20, 2022

Press Release 

NBFIRA Publishes the 2021 Annual Statistical Bulletin

The Non-Bank Financial Institutions Regulatory Authority (NBFIRA) publishes its 2021 Statistical Bulletin. This eighth edition of the publication presents, and analyses audited data conveying the performance of the Non-Bank Financial Institutions (NBFI) sector during the year ended December 31, 2020. Historical data is included for comparative purposes covering the recent five-year period (2016 – 2020).

Overview of Financial Performance of NBFIs 2019 - 2020

The NBFI sector reported total assets of P129 billion during the year ended 31 December 2020, a growth of 2.5 percent from 2019. The growth in total sector assets is largely attributable to the retirement funds industry which continued to dominate the NBFI sector, accounting for 71 percent. The retirement funds assets stood at P92 billion in 2020 compared to P89 billion in 2019 (4 percent growth).  However, the capital markets industry registered a contraction of 23 percent from 2019 mainly attributable to restructuring of one of the significant asset managers.

Overall, the NBFI sector’s capital reserves increased by 9 percent from P7 billion in 2019 to P8 billion in 2020. The sector’s liabilities grew by 3 percent (from P21 billion in 2019 to P22 billion in 2020), largely driven by medical aid funds and micro lenders. That, notwithstanding, capital markets recorded a decline in liabilities of 73 percent due to restructuring.

The NBFI sector’s total revenues registered a decline of 24 percent from P23 billion in 2019 to P17 billion in 2020. The decline was mainly driven by capital markets (54 percent) and retirement funds (47 percent). Insurance and lending activities’ revenues on the other hand, increased by 7 and 14 percent, respectively.

Total expenditures for the NBFI sector grew by 6 percent from P12 billion in 2019 to P13 billion in 2020. All industries experienced an increase in expenditure except the capital markets sector which recorded a decline of 63 percent from P884 million to P325 million in 2019 and 2020 respectively. Also, profits of the NBFIs recorded a decline from P11 billion in 2019 to P4 billion in 2020. 

Overview of Financial Performance of NBFIs 2016 - 2020

Key trends of the NBFI sector during the period under review are:

• NBFI sector assets recorded an upward trend from P115 billion in 2016 to P129 billion in 2020
• The sector’s liabilities declined from P25 billion in 2016 to P22 billion in 2020.
• Capital and reserves grew from P7 billion in 2016 to P8 billion in 2020.
• Revenues increased from P16 billion in 2016 to P17 billion in 2020
• Expenditures also had an upward trend from P10 billion in 2016 to P13 billion in 2020, resulting in decrease in profit from P6 billion to P4 billion in 2016 and 2020, respectively.

The 2021 Statistical Bulletin is available on the www.nbfira.org.bw, under the link below; http://www.nbfira.org.bw/sites/default/files/2021%20NBFIRA%20STATISTICAL....

Notes to Editor 

 About the Non-Bank Financial Institutions Regulatory Authority (NBFIRA)

NBFIRA was established by an Act of Parliament in 2006 to oversee the NBFI sector. The Authority began its operations in 2008 and it is currently governed by the NBFIRA Act (2016) which repealed the previous NBFIRA Act (2006). Since its inception, NBFIRA has achieved significant regulatory and supervisory milestones that have enabled the NBFI sector to grow and operate in line with international standards and best practices

For more information, please contact:

Boa M. Ntebele

Head, Communications & International Affairs

Tel: +267 310 2595 / 368 6100; Email: bntebele@nbfira.org.bw