FNB Eswatini’s profit before tax increased by 8% year-on-year, reaching E184.6 million for the six months ended December 31, 2025. This growth reflects strong underlying performance across the bank’s core operations.
The improvement in profitability was supported by sustained revenue momentum across core banking activities, with both interest income and non-interest revenue contributing positively. Stable margins and disciplined pricing maintained earnings quality despite a competitive market.
Non-interest revenue grew 13% year-on-year, driven by increased customer activity and adoption of digital and self-service channels. Enhancements in service delivery, channel efficiency, and customer engagement contributed to higher transaction volumes, underscoring the bank’s focus on improving customer experience.
Economic Environment
The bank noted that the broader economic environment has been supportive of robust activity. Inflation declined from 3.9% in December 2024 to 2.3% in December 2025, enabling a 25 basis points reduction in the discount rate in May 2025, resulting in a year-end rate of 6.75%. Following South Africa’s announcement of a lower inflation target, Eswatini is expected to benefit through reduced imported inflation and sustained lower interest rates.
Credit to the private sector grew 8% year-on-year by November 2025, with business credit increasing 12% and household credit up 5%, highlighting ongoing economic momentum. The report cautioned that global geopolitical volatility and climate-related risks remain factors affecting growth.
Operational Efficiency
Cost management remained a priority, with focused oversight of discretionary spending and efficiency gains realized through process improvements and increased digital adoption. The credit loss ratio improved to 0.19% from 0.42%, reflecting stronger credit performance and portfolio stability.
Total assets expanded 26% year-on-year to E13.09 billion, driven by higher liquidity, a 23% rise in advances, and 35% growth in deposits across retail and corporate segments. This robust liquidity underpins operational resilience and positions the bank to meet customer needs effectively.
FNB Eswatini continues to maintain a strong capital position, fully complying with regulatory requirements, supported by a diversified funding base and prudent balance-sheet management aligned with internal governance and risk frameworks.
