Inside Biz | SWAZILAND BUILDING SOCIETY PROFIT UP BY 53%

Society realizes E58.9 million in profit after tax for the year ended 31 March 2022.
However, the group’s financial position declines by 1% due to a decline in financial investments to E533 million, compared to E822 million in 2021. This was however, countered by loans and advances, as they grew by 14%

By Ntokozo Nkambule

Swaziland Building Society (SBS) has realized a profit after tax of E58.9 million for the financial year ended 31 March 2021. This is an increase of 53% as the mortgage lender had recorded a profit after tax of E38.4 million in 2021 financial year.

The Society attributes the increase to a E40 million increase in total income when compared to a E16.4 million increase in total expenses. The mortgage lender further notes that the year under review was challenging because of the COVID-19 pandemic and social unrests that took place in 2021. “The COVID-19 pandemic remained a threat to the smooth business operations, with the third and fourth variants hitting operations in July 2021, and December 2021, respectively. The country also faced social unrests in June/July 2021, and also in October 2021, which further disturbed the Society’s ability, and other businesses in general” notes the report.

Despite an increase in profit after tax, SBS notes that the financial position of the group declined by 1% when compared with the previous year. The report attributes the decrease to a 35% decline in financial investments to E533 million compared to E822 million in 2021.

This was, however, countered by loans and advances as they increased in the year under review. “There was a 14% increase in loans and advances to customers, which amounted to E1.8 billion. The increase in loans was driven by the increase in new commercial loans issued and increase in residential loans as a result of the zero deposit campaign” notes the SBS.

“The COVID-19 pandemic remained
a threat to the smooth business operations”

Moreover, the Society states that its Net Interest Income (NII) increased by 2% E192 million compared to E188 million in 2021. The increase was due to an increase in their loan book and the increase in the prime lending rate by overall basis points in the current year. In terms of prospects, the Society anticipates an improvement in economic activity.

The mortgage lender additionally notes that their strategic focus will be tapping into the emerging opportunities presented by the economy as government introduces the recovery plan to boost the economy.