Nedbank Eswatini profit improves by 16.6%

Nedbank Eswatini has recorded a 16.6% increase in headline earnings to E73.7 million for the six months ended June 30.

The increase, from E63.2 million recorded during the corresponding period last year, was supported by growth in income and a reduction in impairment charges on loans and advances.

Impairment charges are amounts a bank records when it expects that some of the money it has lent to customers may not be fully recovered.

According to the bank’s six-month financial performance report, operating income after impairments increased by 18.4%, while net interest income rose by 8.3% to E241.8 million.

Net interest income refers to the difference between the interest a bank earns from lending money and the interest it pays on deposits and other funding. Non-interest revenue was another contributor to the performance, increasing by 16.3% to E136.6 million from E117.4 million in the previous year. The bank said the increase was mainly driven by growth in revenue from customer adoption of digital platforms.

“Nedbank Eswatini Limited delivered headline earnings of E73.7 million, representing a strong improvement from E63.2 million recorded in the corresponding period in 2025,” the bank stated.

A notable improvement was recorded in the amount set aside to cover potential losses from loans that may not be fully repaid. The impairment charge on loans and advances fell to E42.6 million from E57 million in the corresponding period.

“The reduction reflects the positive impact of effective credit risk management practices and collection strategies implemented during the period,” Nedbank said.

The lower impairment charge helped support the bank’s overall earnings performance. However, operating expenses increased significantly during the period, rising by 19.1% to E237.5 million from E199.4 million.

Nedbank attributed the increase mainly to higher operating activities supporting business growth and additional expenditure on initiatives aimed at generating revenue.

The increase in expenses pushed the bank’s efficiency ratio to 62.8%, compared with 58.5% in 2025. The ratio indicates how much a bank spends to generate income.

Despite the rise in costs, return on equity improved to 15% from 11%. Return on equity measures the profit generated from shareholders’ invested capital.

Looking ahead, Nedbank said it would focus on customer experience, credit-risk management, digital banking and operational efficiency. “Management will maintain a prudent approach to credit risk, cost management and capital preservation, while pursuing growth opportunities that support revenue growth and long-term sustainability,” the bank said.

WHAT THIS MEANS FOR CUSTOMERS

For Nedbank customers, the results indicate that the bank continues to invest in digital banking and customer-focused initiatives.

The bank’s focus on digital channels points to technology remaining an important part of its customer strategy.

LOAN BOOK CLIMBS TO E4.9BN

Loans and advances to customers increased by 7.6% to E4.9 billion during the first half of this year, according to the bank.

The growth represents an increase from approximately E4.5 billion recorded previously, as the bank continued to expand its lending activities during the six months ended June 30. In its financial performance report, Nedbank said the increase was “supported by growth in lending activity,” while also pointing to continued customer confidence.

The growth in lending was accompanied by an increase in customer deposits, which rose by 3.5% to E6.4 billion from E6.1 billion. Customer deposits are an important source of funding for banks because they provide money that can support lending and other banking activities.

Nedbank said the growth in deposits demonstrated “continued customer confidence in the bank and supporting its funding position.”

The bank said its strategic focus for the remainder of the year would include strengthening credit-risk management, accelerating digital banking adoption and pursuing growth opportunities.

WHAT THIS MEANS FOR CUSTOMERS

The growth in Nedbank’s loan book indicates that lending remains an important part of the bank’s business, which is relevant to individuals and businesses seeking financing. The increase in customer deposits also strengthened the bank’s funding position.

…OPERATING COSTS RISE BY 19%

Nedbank Eswatini’s operating expenses increased by 19.1% to E237.5 million in the first half of 2026, outpacing the growth in the bank’s income.

The increase was from E199.4 million recorded during the corresponding period last year.

According to the bank’s six-month financial performance report, the higher costs were mainly driven by increased operating activities supporting business growth, as well as additional expenditure on initiatives aimed at generating revenue.

The rise in expenses pushed Nedbank’s efficiency ratio to 62.8%, compared with 58.5% in 2025.

The efficiency ratio measures how much a bank spends to generate income. A rise in the ratio means a greater proportion of the bank’s income is being consumed by operating costs.

Nedbank said the increase in costs reflected its continued investment in business activities and initiatives intended to support future revenue generation.

The bank’s performance report said management would continue to focus on cost management, while pursuing growth opportunities and improving operational efficiencies.

The higher operating costs came as the bank continued to invest in its business and customer offering, including digital initiatives.

What this means for customers

For customers, the increase in operating expenses does not automatically mean higher banking fees or charges. The results show that Nedbank is spending more to support its operations and growth, but the report does not indicate any immediate changes to customer pricing.

NEDBANK ESWATINI FINANCIAL PERFORMANCE AT A GLANCE