FNB ESWATINI PROFIT AFTER TAX UP 9.5%

EZULWINI – FNB Eswatini’s positive earnings growth has continued to be sustained as the bank’s profit after tax for the 2024 financial year increased by 9.5 per cent to reach E268.8 million.

According to the bank’s integrated annual report, profits before tax increased to E364.7 million from E326.7 million realised in 2023, matched by a 12.2 per cent improvement in total comprehensive income for the year, which closed at E275.3 million while in 2023, it closed at E245.3 million.The 12.2 percent improvement is well ahead of the combined economic growth and inflation estimates, which demonstrates positive economic value accretion to shareholders. This performance also represents a strong return on equity (‘ROE’) of 21.8 percent, which is similar to the prior year’s outcome.

Growing

These results have been achieved in an operating environment that has shown growing signs of stability across key economic indicators that traditionally impact performance. In the past year, inflation has mostly remained within the 4 to 4.5 per cent range, which has been relatively lower than some of the country’s regional peers. Gross domestic product has continued to improve, with 2023 national estimates reported at about 4.8 per cent, in real terms. The benchmark lending rates have remained stable and overall banking sector credit growth has been solid at 11.7 per cent, year on year.

Whilst these standard metrics demonstrate a sustained recovery of the Eswatini economy from the global disruption of recent years, the bank remains awake to contra-indicators that may highlight potential headwinds. “We remain concerned that unemployment still appears high, especially among the youth, which is a critical demographic; and that the slower average price growth of between 4 and 4.5 per cent in the last year, while providing much-needed relief, is still on the back of price acceleration witnessed in prior years. In a highly integrated society like ours, these two variables have, amongst others, continued to put consumers’ spending power under pressure,” read the statement.
 

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