By Phiwa Sikhondze
FNB Eswatini has reported a significant 11.6% increase in profit before tax, reaching E364.7 million for the financial year ending 30 June 2024.
Meanwhile, the bank’s profit after tax rose to E268.8 million, up from E245.3 million in 2023, reflecting its resilience and strategic adaptation in an evolving economic landscape.
These impressive numbers were disclosed by the bank’s Chief Executive Officer Dennis Mbingo during their Annual Financial Results Presentation held at the bank’s headquarters this morning.
The Presentation was attended by local media houses, comprising senior business reporters as well as Managing Editors. Also in attendance were shareholders and various stakeholders.
Mbingo attributed the positive performance to a combination of internal measures aimed at enhancing customer experience, coupled with a relatively stable global economic environment.
“We’ve been fortunate to operate in an environment that has demonstrated improving stability,” Mbingo said. “While there are global concerns, our strategy has remained focused on growth, accountability, and providing value to our customers.”
A key factor in FNB Eswatini’s financial success was the substantial 21.9% growth in customer deposits, which rose from E5.171 billion in 2023 to E6.301 billion in 2024.
According to CFO Njabulo Dlamini, this increase positions the bank to meet the rising demand for development funding across multiple sectors in the country.
The bank’s lending activities were similarly robust, with gross advances rising by 17.8% to E4.283 billion, up from E3.635 billion in the previous year. Despite this expansion, FNB Eswatini’s credit loss ratio remained low at 0.2%, demonstrating prudent credit management and effective recovery in prior impairments.
FNB Eswatini’s digital transformation efforts have played a significant role in its growth, with digital channels now leading in transaction volumes.
According to the Annual Report, the FNB Banking App processed E12.2 billion worth of transactions during the year, a 34.8% increase from the E9.07 billion handled in 2023. This growth is driven by more than 53 million transactions processed via the app, almost 50% more than the total handled by all branches combined.
“Our digital strategy is paying off, and we’re seeing strong uptake of our digital products, which allows us to serve our customers more efficiently,” Mbingo said.
The bank also saw significant growth in its eWallet services, with transaction values increasing to E3.25 billion, up from E2.76 billion in 2023, reflecting its growing popularity among emaSwati for low-value domestic payments.
Despite the global economic uncertainties, FNB Eswatini’s leadership expressed confidence in the bank’s prospects.
“The relatively stable interest rate environment, coupled with improving inflation rates, has allowed us to continue providing valuable services while navigating global challenges,” said Mbingo. However, he acknowledged ongoing concerns about unemployment and its impact on consumer spending power.
In December 2023, FNB Eswatini achieved a milestone by localizing its shareholding and listing on the Eswatini Stock Exchange. This strategic move saw 24.9% of the bank’s shares held by local institutions, which include the Public Service Pensions Fund (PSPF) at 7.40%, Swaziland Empowerment Limited (SEL) at 4.92%, the Eswatini National Provident Fund at (ENPF) 4.46%, and the FNB Eswatini Employee Share Trust owning 4.99%.
The remaining local shareholders include Old Mutual Swaziland with 1.20%, Sibaya Umbrella Fund with 1.21%, and SNAT Co-operative with 1.00%.
The CEO noted that their listing on the ESE represents a commitment to increasing local investment opportunities and enhancing market transparency.
“For the first time, FNB Eswatini is no longer reporting results based solely on international shareholding. Instead, 24.9% of the bank is now owned by local shareholders through various schemes, reflecting the bank’s alignment with its shared prosperity model.”
Mbingo emphasized the importance of this development and expressed openness to further collaboration with local entities to address their needs and foster stronger partnerships.
He further revealed that the bank paid an interim dividend of E84.5 million for the first six months of the year and noted that they expect their last dividend of the financial year to exceed E170 million.