Inside Biz | NEDBANK ESWATINI RECORDS E136 MILLION PROFIT

Bank records a total income of E478 million for the financial year ended 31 December 2021, with E51 million going to taxation
Records an increase of E58 million (74%) in net profit from the previous financial year
Declares E106 million in dividends to shareholders

Photo Credit: https://www.nedbank.co.sz/

By Ntokozo Nkambule

Nedbank Eswatini, an entity listed on the Eswatini Stock Exchange (ESE) has recorded an increase of E58 million in its earnings to E136 million for the financial year ended 31 December 2021. The bank had recorded earnings of E78 million in the 2020 financial year.

The bank in a press release notes that its total income for the Annual Financial Year Ended 31 December 2021 was an impressive E478 million; an increase from the previous financial year, which stood at E461 million. The banks’ Managing Director, Fikile Nkosi notes that going forward they believe that they will continue to grow as the country is expected to also grow. “The Eswatini economy has remained resilient, with the country’s GDP expected to record a full-year expansion of 5.9% in 2021. The country is expected to return to its pre-COVID growth path in 2023” she said. Furthermore, Nkosi highlights that the easing of COVID-19 restrictions also benefitted them as it led to an increase in transactional volume, leading to commission and fees growing by 4% to E190.8 million.

Additionally, Nedbank Eswatini has also disclosed that they will declare dividends this year. “Notice is hereby given that a dividend of 428 cents per share will be declared, totaling E106 million for the financial year ended 31 December 2021 payable to shareholders registered in the books of the company at the close of business on 10 June 2022” notes the bank. It is worth noting that the dividends will be paid to shareholders on the 30^th of June 2022. Moreover, the bank states that it will allocate more investment to digital infrastructure as they note the change in consumer behavior. Nkosi observes that over the past two years more customers are migrating to electronic and digital platforms, even though transaction volume was negatively impacted during the internet shutdown which resulted from the political unrest last year.

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