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Published on 2024-04-02 13:45:54
Nedbank Eswatini has reported a strong financial performance despite facing a challenging environment. The Managing Director, Fikile Nkosi, announced a dividend of E100 million for its shareholders for the financial year ending December 31, 2023. This equated to a dividend of 64.06 cents per share, with payment scheduled for May 31, 2024. The bank’s headline earnings reached E178 million, showing a 10% increase.
The bank’s dividend declaration exceeded the interim ordinary dividend of 63.5 cents per share, totaling E84,491,859 for the six months ending December 31, 2023. In her statement, Fikile Nkosi highlighted the modest growth of the Eswatini economy in 2023, marked by recovery from the Covid-19 pandemic and a boost in the country’s SACU receipts. Global and local inflation also remained high due to the Russia-Ukraine conflict.
To combat rising prices, the Central Bank of Eswatini maintained a contractionary monetary policy stance by raising interest rates by a net 100 basis points during 2023. Nedbank Eswatini, as a purpose-led business, saw positive contributions from its Retail, Wholesale Banking, and Treasury divisions in the 2023 performance. The bank continues to support the government’s capital funding goals for national infrastructure projects.
Nedbank Eswatini is undergoing a digital transformation, with a growth in the digital active base from 45% to 64%. The bank also noted a 25% increase in send money volumes. Innovation remains key to their growth strategy, with the introduction of digital solutions such as USD CFC interest-earning accounts, Floating term deposits, and Negotiable certificates of Deposits.
In terms of Corporate Social Investment (CSI), Nedbank Eswatini allocated E1.2 million to various initiatives. Key financial highlights for the year included a 10% increase in headline earnings to E178 million, driven by growth in net interest income (NII). Headline earnings per share (HEPS) stood at 722 cents, while Return on Equity (ROE) increased to 17%. The Cost-to-Income ratio improved to 52%, and the Capital Adequacy Ratio reached 18.4%, surpassing regulatory requirements.
The bank’s final dividend for 2023 was set at 406 cents per share. Despite the challenges posed by the economic environment, Nedbank Eswatini’s strong financial results reflect its resilience and strategic focus on innovation and digital transformation.
Read the original article on swazidailynews.com
