MBABANE – Shareholders of FNB Eswatini have experienced a notable decline in interim dividend payouts, with distributions falling by 23.6 per cent for the six months ended December 31, 2025.
This follows the bank’s declaration of an interim gross cash ordinary dividend of 55 cents per share, amounting to E73.15 million, compared to 72 cents per share totalling E95.76 million declared in the corresponding period in 2024.
The drop represents a decrease of E22.61 million in total dividend payouts year-on-year.
The decline in dividends comes despite FNB Eswatini maintaining its position as one of the country’s leading financial institutions, highlighting the broader pressures and strategic considerations influencing capital allocation decisions within the banking sector.
FNB Eswatini is majority-owned by FirstRand EMA Holdings Proprietary Limited, which holds a 75.01 per cent stake as part of the South Africa-based FirstRand Group.
The remaining 24.99 per cent is held by local institutional investors and an employee share trust, a structure that followed the bank’s listing on the Eswatini Stock Exchange (ESE) in 2023.
The listing marked a significant milestone for the local financial sector, broadening participation in one of the country’s most prominent banking entities while aligning with national objectives of increasing local ownership in key industries.
Among the notable local shareholders is the Public Service Pensions Fund (PSPF), which holds a 7.40 per cent stake, making it the largest domestic institutional investor in the bank.
The FNB Eswatini Employee Share Trust follows with a 4.99 per cent shareholding, reflecting the bank’s efforts to promote employee ownership and participation.
Swaziland Empowerment Limited (SEL) holds 4.92 per cent, while the Eswatini National Provident Fund (ENPF) accounts for 4.46 per cent. Other shareholders include the Sibaya Umbrella Provident Fund, with an estimated stake of between 1.01 per cent and 1.21 per cent, Old Mutual Swaziland at 1.2 per cent and the SNAT Savings and Credit Co-operative at 1 per cent.
The reduction in dividend payouts is likely to draw attention from these institutional investors, many of whom rely on dividend income to support long-term obligations such as pension payments and member returns.
FNB Eswatini recently 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 showed 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.
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FNB Eswatini CEO Thokozani ‘TK’ Dlamini. (File pic)