Mbabane- FNB Eswatini’s customer deposits jumped by 23 per cent to E8.12 billion in the past financial year, while loans advanced by the bank grew by 21 per cent, signalling strong demand for banking and credit services.
The sharp growth in deposits and lending came as the bank expanded its balance sheet, with total assets increasing by 17 per cent from E10.29 billion in 2025 to E12.07 billion by June 30, 2026.
Although the expansion points to increased activity across the bank’s business, it did not translate into higher profits, as FNB’s profit before tax declined by three per cent from E347 million to E336 million.
The bank’s latest audited financial statements show that the E1.51 billion increase in customer deposits was driven mainly by growth in term deposits, supported by savings and call accounts.
At the same time, gross advances increased to E5.68 billion from E4.69 billion, with the bank recording stronger uptake of term loans and overdrafts, as well as growth in home loans and WesBank lease receivables.
As a result, the bank’s loan-to-deposit ratio stood at 71.9 per cent, compared with 73 per cent in the previous financial year.
The growth in lending and deposits was accompanied by stronger revenue. Total operational income rose by nine per cent to E1.196 billion, while net interest income before impairments increased by eight per cent to E584.58 million.
Non-interest revenue also performed strongly, rising 12 per cent to E651.08 million. The bank attributed this increase to higher customer transaction activity and increased adoption of its digital banking channels.
However, despite the improvement in revenue, the bank’s bottom line came under pressure during the year.
FNB reported that higher impairment charges and increased operating expenses weighed on earnings, with operating and administration expenses rising to E814.46 million.
The increase in costs was largely driven by a 24 per cent year-on-year rise in support costs associated with shared support functions.
Consequently, profit for the year fell from E268.78 million in 2025 to E257.66 million, while basic and diluted earnings per share declined from 202 cents to 194 cents.
Nevertheless, the bank maintained a strong capital position, with total equity rising to E1.535 billion from E1.437 billion.
The growth in lending also came with only a marginal deterioration in credit quality, as the credit loss ratio moved from 0.6 per cent to 0.7 per cent.
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