Mbabane, Eswatini – First National Bank of Eswatini (FNB) has reported robust financial performance for the year ending June 30, 2024, with significant growth in several key metrics, reflecting the bank’s strong market position and customer-centric strategy.
FNB Eswatini’s profit before tax increased by 11.6%, reaching E364.7 million compared to E326.7 million in 2023. This growth was driven by solid revenue from both interest and non-interest income, as well as a continued expansion in customer deposits and loan advances. The bank’s total comprehensive income also rose by 12.2% to E275.3 million, up from E245.3 million in 2023.
Strong Customer Growth and Deposits
FNB saw a 21.9% increase in customer deposits, which grew to E6.3 billion, up from E5.2 billion in 2023. This increase is critical for the bank’s ability to fund future growth and meet rising demand for loans across multiple sectors. The loans-to-deposits ratio remains strong at 68%, ensuring liquidity and lending capability for the bank.
Additionally, customer borrowings spurred growth, with gross advances rising 17.8% to E4.3 billion from E3.6 billion last year. FNB’s focus on maintaining low credit loss ratios has paid off, with the ratio declining to 0.2%, below the industry average, further solidifying the bank’s sound credit management practices.
Digital Banking and Transactions
The bank’s digital platforms continue to show impressive growth. The FNB Banking App, which has become the bank’s primary transaction platform, handled over E12.2 billion in value, an increase from E9.07 billion in 2023. The app also recorded 53 million transactions, a 30% rise compared to the previous year.
Other digital services, such as online banking, continue to dominate business transactions, processing nearly E110 billion annually. Meanwhile, the bank’s CashPlus Agency Model exceeded E1 billion in transaction values for the first time, reinforcing the success of FNB’s efforts to enhance financial inclusion.
Outlook and Future Investments
With a return on equity (ROE) stable at 21.8%, FNB Eswatini remains well-positioned to pursue lending opportunities and further expand its digital banking footprint. Looking ahead, the bank is set to invest in improving customer experience through initiatives like the deployment of Coin and Bulk Note Depositors and the expansion of its service centers.
FNB’s CEO, Dennis Tikhalo Mbingo, expressed optimism about the future: “The bank continues to focus on providing innovative solutions for our customers while ensuring sustainable growth. We remain committed to driving value for our shareholders and contributing to Eswatini’s economic development.”
The full audited financial statements and annual report are available for shareholders, with the Annual General Meeting (AGM) scheduled for November 1, 2024.
