NEDBANK ESWATINI 1ST HALF EARNINGS UP BY 0.4%

MBABANE - In the first 6 months of 2024, Nedbank Eswatini Limited recorded headline earnings of E65.5 million, reflecting a 0.4 per cent increase.

This is when compared to the E65.2 million recorded in same period last year. According to the bank’s interim results, total income increased by 6 per cent to E307.8 million (2023: E291.3 million). The bank’s loans and advances to customers increased by 7 per cent to E3.9 billion while in the same period in 2023 they reached E3.7 billion and funding from customers’ deposits declined by 4 per cent to E4.6 billion (2023: E4.9 billion).

The bank reported that the growth in its assets, largely driven by the increased lending activity to clients and the availability of excess funding from client deposits, led to the bank realising net interest income (NII) of E207.2 million (2023: E195.3 million), reflecting a 6 per cent growth. The high interest rate environment put pressure on NII through the increase in costs of funds, driven by growing client demand for high interest earning deposit products.  Furthermore, the bank’s impairment charge for the period was E32.1 million (2023: E39.5 million).

The bank’s non-interest revenue for the period recorded an increase of 5 per cent to E100.6 million (2023: E95.9 million) and the non-interest revenue to expenses ratio declined by 300 basis points to 56 per cent (2023: 59 per cent). The bank’s strategic intention is to prioritise the onboarding of customers onto digital platforms which enable clients to enjoy a seamless banking experience. Operating expenses expenditure levels increased by 12 per cent to E180.4 million (2023: E161.3 million) and the efficiency ratio declined to 59 per cent (2023: 55 per cent), driven by inflationary pressures.

Capital Adequacy

The bank’s capital adequacy ratio was 16.6 per cent (2023: 18.4 per cent), above the regulatory requirement of 8 per cent. Capital and reserves totaled E1 030 million (2023: E1 060 million). The bank’s capital adequacy ratio has been computed according to Basel II reporting principles as adopted by the Central Bank of Eswatini (CBE).

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