Central Bank of Eswatini Records E385 Million Profit For 2022/23 Financial Year

The Central Bank of Eswatini (CBE) has realized a 112% increase in its profit for the year ended 31 March 2023.

The results were announced by the Governor of the CBE, Dr. Phil Mnisi earlier today when presenting the Banks’ Annual Integrated Report for the aforementioned period. The event was held at the Happy Valley Hotel.

The Governor noted that the Report forms part of the CBE’s public accountability, transparency, and responsibility to their broad range of stakeholders.

“The bank made a profit of E385,849 million in the 2022/23 financial year, an increase from E182,302 million profit recorded in 2021/22. A total of E445,5 million was paid by the bank as dividends to the government of Eswatini, in line with the CBE’s Order of 1974. This amount comprises 25% of realized profit and 20% of the balance in the revaluation gains account at year-end.”

“These payments were made after calculating a total comprehensive income of E1, 013, 295 billion which considers the E627, 446 million revaluations gains realized by the bank in 2022/23. It is worth mentioning that the total comprehensive income of over E1 billion is the first of its kind, hence quite historic.”

Dr. Mnisi attributed the historic results to market conditions. According to the Report, when it comes to revaluation gains/losses on foreign exchange activities, the Bank realized gains mainly as the result of the Lilangeni (SZL) depreciating against major currencies during the financial year.

The Bank also realized a 35% increase in its Interest Income, which it notes increased due to higher interest rates and better portfolio holdings.

Dr. Mnisi when addressing stakeholders noted that the increase in comprehensive income was due to the depreciation of the SZL against major trading currencies which caused a profit on the revaluation of foreign-denominated assets.

Despite the impressive comprehensive income and profit the Bank’s Interest expense rose to 55%.

“Interest paid rose relative to the previous financial year on the back of higher liability holdings on the local bank’s call accounts and higher interest rates compared to the last year.”

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