NON-PERFORMING LOANS UP BY 12%

MBABANE – Nedbank Eswatini has reported an increase of 12 per cent in non-performing loans reaching E434 million from the E386.9 million recorded in 2023.

It was explained that the high levels of impairment were attributable to the high interest rate environment that has increased the financial stress on clients. It is expected that the bank’s clients will collectively breathe a sigh of relief following that the Central Bank of Eswatini decided to slash interest rates by 25 basis points to 7.25 per cent during its last monetary policy consultative meeting last week as consumer prices cooled down and projections for inflation remained on the down side of the scale.

Inflation

This cut follows months in which the benchmark rate had held steady at 7.50 per cent despite a discernible decline in headline inflation. The banks have since reduced their prime lending rate from 11 per cent to 10.75 per cent. The Board of Directors is satisfied that the bank’s capital is adequate and meets regulatory requirements. Nedbank’s focus for the rest of 2024 is on efforts to consistently deliver a superior client experience underpinned by service excellence and innovative banking solutions. Meanwhile, The Nedbank Group reported an 8 per cent rise in half-year profit, supported by lower impairment charges and solid growth in non-interest revenue (NIR).

The bank reported that its headline earnings rose to E7.9 billion in the six months ended June 30. The new Nedbank Chief Executive (CE) Jason Quinn stated that the operating environment in the first half of 2024 was challenging as economic activity remained weak, said Quinn.

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: