MBABANE - FNB Eswatini has reported a solid financial performance for the six months ended December 31, 2025, with profit before tax increasing by eight per cent year-on-year.
The bank’s abridged interim financial results, released last Friday, show that profit before tax rose to E184.6 million, up from E170.6 million recorded during the corresponding period in 2024.
The improved profitability was driven by strong revenue momentum, increased customer activity and continued uptake of digital banking platforms.
The results highlight a period of stable margins, disciplined pricing and improved operational efficiencies, as the bank navigated a competitive financial services environment, while maintaining focus on long-term growth and customer-centric innovation.
According to the bank’s financial commentary, the increase in profitability was largely supported by consistent revenue growth across core banking activities. Both interest income and non-interest revenue contributed positively to overall earnings, underlining the strength of the bank’s diversified income streams.
Interest income for the period increased to E529.7 million, compared to E489.3 million recorded during the same period last year.
Despite rising interest expenses, net interest income remained resilient, reflecting disciplined balance sheet management and stable lending margins.
The bank indicated that stable margins and prudent pricing strategies played a crucial role in sustaining earnings quality amid competitive pressures within the banking sector.
Overall income from operations increased to E602.2 million, compared to E552.2 million during the same period in 2024, demonstrating continued growth in the bank’s revenue base.
A key highlight of the results was the strong performance of non-interest revenue, which increased by 13 per cent year-on-year.
This growth was largely driven by increased customer activity and the continued adoption of digital and self-service banking channels.
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Supported by positive economic environment
MBABANE - The bank’s results were supported by a relatively favourable economic environment in Eswatini during the reporting period.
According to the bank’s operating environment commentary, inflation declined from 3.9 per cent in December 2024 to 2.3 per cent in December 2025. Lower inflation helped create room for a 25 basis point reduction in the discount rate, implemented in May 2025, bringing the rate down to 6.75 per cent by the end of the year.
The easing of inflationary pressures has positive implications for borrowing costs and overall economic activity. The bank also noted that credit extended to the private sector increased by 8 per cent year-on-year as of November 2025.
Credit extended to businesses grew by 12 per cent, maintaining a trend of double-digit expansion, while credit to households increased by 5 per cent over the same period.
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... improvement in credit quality
MBABANE - Another positive development in the interim results was the improvement in the bank’s credit performance.
The credit loss ratio declined significantly to 0.19 per cent, compared to 0.42 per cent recorded during the same period last year.
This improvement reflects stronger underlying credit performance within the bank’s loan portfolio and more stable economic conditions affecting borrowers. Lower credit losses indicate that fewer loans are deteriorating into default, which ultimately strengthens the bank’s profitability and balance sheet resilience. The improvement also suggests that customers and businesses served by the bank are maintaining relatively healthy financial positions, despite global economic uncertainty.
FNB Eswatini also recorded strong growth in its balance sheet during the period under review.
Total assets increased by 26 per cent year-on-year, reaching E13.09 billion, compared to E10.41 billion recorded during the same period in 2024. The growth was driven by higher liquidity balances, increased lending activity and strong deposit growth across both retail and corporate banking segments.
Customer deposits rose sharply, reaching E9.315 billion, compared to E6.914 billion in the prior period, representing a 35 per cent increase.
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FNB Eswatini CEO Thokozani ‘TK’ Dlamini. (File pic)