NBFIRA Publishes Statistical Bulletin 2023
- Ten year NBFI sector review;
- NBFI sector profits grew by more than 100 percent to P1.2 billion;
- Sector assets recorded an upward trend of 32.8 percent to P161 billion.
The Non-Bank Financial Institutions Regulatory Authority (NBFIRA) has published the 2023 Statistical Bulletin. The report provides industry aggregates for financial performance, financial position, capital adequacy and other key financial stability indicators of the Non-Bank Financial Institutions (NBFIs). The tenth edition of the publication presents performance for the year ended December 31, 2022, as well as historical data for a ten year period (2013–2022) for comparison.
NBFI Sector Performance 2018-2022
Globally, 2021/2022 period was characterised by increasing geo-political tensions, above normal inflationary pressures, tighter monetary policy stances and subsequent sluggish economic growth. The domestic economy, however, remained strong and the NBFI sector continued to be relatively profitable, stable and resilient.
The NBFI sector experienced growth in the number of licensed entities from 729 in 2018 to 799 in 2021 and to 823 in 2022, largely driven by the non-bank lending entities industry.
NBFI sector assets recorded an upward trend of 32.8 percent from P121 billion in 2018 to P161 billion in 2022. Assets grew by five percent from P153 billion to P161 billion between 2021 and 2022, which is noticeably less than the 18.4 percent growth experienced in the prior period.
The sector’s financial soundness and robustness also improved marginally with capital and reserves increasing by 29.9 percent from P6.8 billion in 2018 to P8.9 billion in 2022. The increase from P8.8 billion in 2021 to P8.9 billion in 2022 was due to the insurance and capital markets industries.
The sector’s liabilities increased by 9 percent from P22 billion in 2018 to P24 billion in 2021. Total liabilities grew by 5.7 percent from P23 billion in 2021 to P24 billion in 2022 mainly contributed by insurance industry.
NBFIs’ revenues increased by 39 percent from P16 billion in 2018 to P22 billion in 2022. However, the revenues decreased by 35 percent from P34 billion in 2021 to P22 billion in 2022. The decline was mainly driven by retirement funds industry which registered a 48 percent decrease in total income from P23 billion in 2021 to P12 billion in 2022, primarily due to unfavourable market conditions.
Total expenditures of the NBFIs increased by 37 percent from P10 billion in 2018 to P14 billion in 2022. Expenditures grew by 16 percent from P12 billion in 2021 to P14 billion in 2022 mainly driven by insurance and retirement funds.
The Statistical Bulletin is available on HERE
Notes to Editor:
About the Non-Bank Financial Institutions Regulatory Authority (NBFIRA)
The Regulatory Authority is governed and empowered by the NBFIRA Act (2023) which repealed the previous NBFIRA Act (2016) and supporting statutes to regulate and supervise the NBFI sector to foster financial soundness and good market conduct towards financial stability. The Non-Bank Financial Institutions (NBFI) sector which comprises six industries being Insurance, Medical Aid Funds, Capital Markets, Virtual Asset Businesses, Retirement Funds and Lending Activities.
The Regulatory Authority is additionally responsible for ensuring compliance to local and international obligations regarding Anti-Money Laundering & Combatting the Financing of Terrorism and Proliferation (AMLCFT&P) within the NBFI sector.
Since inception, the Regulatory Authority 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 Ntebele
Head, Communication & Consumer Affairs
Tel: +267 3102595 / 3686100
Email: info@nbfira.org.bw or bntebele@nbfira.org.bw
