Nedbank Eswatini has reported a 16.6% increase in headline earnings to E73.7 million for the six months ended June 30, 2026. This growth was driven by lower impairments and digital growth. The bank's financial performance report showed that operating income after impairments increased by 18.4%, while net interest income rose by 8.3% to E241.8 million.
The bank's net interest income, which is the difference between the interest earned from lending and the interest paid on deposits, contributed to the improved performance. Non-interest revenue also increased by 16.3% to E136.6 million from E117.4 million in the previous year. Nedbank attributed the growth to increased customer adoption of digital platforms.
Impairment charges, which are amounts set aside for potential losses from loans that may not be fully repaid, 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.
Despite the improved earnings performance, operating expenses increased significantly during the period, rising by 19.1% to E237.5 million from E199.4 million. The bank 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. However, return on equity improved to 15% from 11%. The bank's loan book climbed to E4.9 billion during the first half of this year, representing a 7.6% increase from the previous period.
Customer deposits also increased by 3.5% to E6.4 billion from E6.1 billion, demonstrating continued customer confidence in the bank and supporting its funding position. Nedbank's strategic focus for the remainder of the year includes strengthening credit-risk management, accelerating digital banking adoption, and pursuing growth opportunities.
Nedbank Eswatini's 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's performance indicates that it continues to invest in digital banking and customer-focused initiatives, with a focus on technology remaining an important part of its customer strategy.
Key points
- Nedbank Eswatini's headline earnings increased by 16.6% to E73.7 million for the first half of 2026.
- The bank's loan book grew by 7.6% to E4.9 billion during the first half of 2026.
- Operating expenses increased by 19.1% to E237.5 million, driven by higher operating activities and additional expenditure on revenue-generating initiatives.
