Times Of Swaziland: NON-PERFORMING LOANS UP BY 12%

NON-PERFORMING LOANS UP BY 12%
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Nhlanganiso Mkhonta on 27/09/2024 08:17:00


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.