MBABANE – The non-banking financial institutions (NBFIs) have maintained their upward growth trajectory into 2025, according to the Financial Services Regulatory Authority’s (FSRA) first quarter bulletin.
The report shows that total NBFI assets increased by 1.15 per cent in the current period, rising from E113 billion in the previous quarter to E114 billion. On a year-on-year basis, assets grew by 8.87 per cent, marking a steady performance despite mixed sectoral results.
The growth was largely driven by the capital markets sector, which saw assets increase by 2.14 per cent from E38.89 billion to E39.72 billion over the quarter.
This represents a significant 11.28 per cent rise year-on-year, with assets moving from E35.70 billion in the first quarter of 2024 to E39.72 billion in the period under review.
*…
Credit institutions, building societies decline
MBABANE – In contrast, credit institutions experienced a 2.98 per cent quarterly decline, with assets falling from E4.73 billion to E4.59 billion.
However, year-on-year figures showed marginal growth of 0.44 per cent, rising from E4.57 billion in Q1 2024.
Similarly, building societies posted a 2.01 per cent quarterly decrease, with assets dropping to E3.67 billion from E3.74 billion. Yet, on an annual basis, the sector recorded a 4.91 per cet increase, largely driven by a remarkable 45.38 per cent surge in domestic investments – from E389.45 million to E566.18 million.
Meanwhile, retirement funds maintained stability, with total assets rising by 1.16 per cent during the quarter, from E52.25 billion to E52.86 billion. FSRA attributed the increase to gains in short-term investments, equities and property portfolios.
On the local front, domestic assets grew by 0.33 per cent, moving from E25.60 billion to E25.68 billion, reflecting cautious investment allocations amid global financial market volatility.
The insurance industry recorded contrasting outcomes in the first quarter of 2025.
Long-term insurers posted strong premium growth, with Gross Written Premiums (GWP) surging 25.47 per cent year-on-year to E295.66 million, up from E235.64 million.
Retirement funds and group life products contributed significantly to this performance, with growth rates of 145.8 per cent and 15.24 per cent, respectively, together accounting for 45.78 per cent of total premiums.
Despite this strong premium growth, claims and policy benefits increased by 12.00 per cent, pushing the sector’s loss ratio to 53.70 per cent. Nonetheless, underwriting results improved by 52.22 per cent, keeping the sector profitable overall.
*Full article available in our publication.
Leave a comment