MBABANE – Standard Bank Eswatini has reported a resilient financial performance for the year ended December 31, 2025, with profit after tax increasing by 3 per cent to E253 million.
The bank’s latest abridged financial statements released yesterday reflect a steady upward trajectory in key performance indicators, supported by strong balance sheet management, improved asset quality and continued customer confidence.
Despite headwinds such as lower interest rates and subdued foreign exchange activity, the institution-maintained stability and delivered positive returns to shareholders.
A key highlight of the bank’s performance was the growth in loans and advances, which increased by 9 per cent to E7.4 billion. This expansion was largely driven by new deals concluded during the financial year, signalling increased demand for credit and the bank’s continued role in supporting economic activity across sectors.
The growth in lending aligns with broader economic developments in Eswatini, where improving liquidity conditions and moderate inflation have encouraged borrowing and investment.
By extending credit to businesses and households, Standard Bank Eswatini has reinforced its position as a key enabler of economic growth.
Customer deposits rose significantly, increasing by 18 per cent to E10.1 billion from E8.5 billion in the previous year.
This growth reflects sustained customer confidence in the bank and its offerings, as well as effective deposit mobilisation strategies.
The strong deposit base has enhanced the bank’s liquidity position, providing a solid foundation for future lending.
Increased liquidity not only strengthens the bank’s financial resilience, but also positions it to capitalise on emerging opportunities in infrastructure financing and private sector development.
Net interest income declined marginally by one per cent to E777 million, impacted by a lower average interest rate environment. The reduction in rates, influenced by monetary policy adjustments, placed pressure on margins, a trend observed across the banking sector.
However, the bank managed to cushion the impact through disciplined balance sheet management, ensuring that earnings remained stable despite the challenging environment.
Non-interest revenue also declined by 2 per cent to E450 million, primarily due to reduced foreign exchange activity. This reflects broader global and regional economic dynamics, including subdued trade flows and currency volatility.
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