Nedbank Eswatini has posted headline earnings of E212.1 million for the year ended December 31, 2025, representing a 5% increase in a year defined by massive growth in its cash reserves. While high interest rates have put pressure on some borrowers, the bank’s balance sheet has expanded, fueled by an influx of customer cash.
According to the banks statement of financial position, as published by the Eswatini Stock Exchange, Nedbank Eswatini’s total revenue growth showed a 15.7% increase in non-interest revenue, which reached E254.1 million. This growth was attributed to higher transaction volumes as the bank successfully migrated more customers onto its digital platforms. Net interest income also moved upward by 6.6%, hitting E462.2 million, supported by increased lending activity and a growing asset base.
The bank maintains a robust capital position with a capital adequacy ratio of 15.2%, nearly double the regulatory requirement of 8.0%.
“Capital and reserves totaled E1 110 million (2024: E1 153 million). The Bank’s capital adequacy ratio has been computed according to Basel II reporting principles as adopted by the Central Bank of Eswatini.
The Board of Directors are satisfied that the Bank’s capital is adequate and meets regulatory requirements”.
The impairment charge for loans and advances increased from E24.4 million to E61.1 million, a 150% increase due to the increased financial pressure on customers struggling to keep up with repayments in a high-interest rate environment.
“The significant adverse rise in impairments reflects increased financial stress experienced by certain customer segments in a high-interest rate environment. The Bank continues to strengthen its credit risk management and collection strategies to mitigate future credit losses”.
Desspite the pressure on borrowers, depositor confidence remains at an all-time high as customer deposits grew by 22.3% to reach E6.1 billion, providing the bank with ample liquidity, loans and advances to customers also grew to E4.5 billion.
Meanwhile, the bank’s operating expenses increased by 8.3% to E375.0 million from E346.3 million in 2024, ‘largely driven by inflationary pressures and continued investment in technology and operational improvements’. “The efficiency ratio remained relatively stable at 52.3% (2024: 53.0%)”.
Following these results, the Board of Directors has declared a dividend of 710 cents per share, totaling E175 million. Shareholders on the register by May 8, 2026, will receive payment on May 31, 2026. The bank has scheduled its Annual General Meeting for May 29, 2026.