By Lwazi Dlamini
EswatiniBank might have made a gross income of E445 million, but the bank closed the year, on March 31, 2024, with a loss of E42.999 million.
According to the bank’s audited financial statement, the bank experienced a significant increase in credit costs and operating costs hence the closing net loss position.
“This was largely a result of significant impairments raised in respect of a few facilities, which have remained in non-performing status for an extended period of time.
The Bank continues to pursue the respective customers whilst efforts to collect from collateral are also being made,” reads the statement presented by Managing Director Nozizwe Mulela on Friday.
ALSO READ: Central Bank of Eswatini marks 50 years of excellence, shares insightful history
The MD said the operating costs also increased significantly due to increased IT systems licensing and related costs.
“The Bank is continuously exploring ways to contain the operating costs whilst focusing on revenue-generating initiatives and implementing new revenue-generating projects which are nearing completion.
Significant improvement in performance is anticipated going forward.
The Bank’s gross income generated during the year ended March 31, amounted to E445 262 million which reflected an increase of E56.346 million from the E388.916 million in the previous year.”
“The bank also achieved good growth in its total assets and increased the loan book in line with improvement in the economy.
The total assets increased by 7.9 per cent from E2.922 billion in the previous year to E3.153 billion.
“The statement of financial position growth was driven by an increase in funding balances and special funds which enables the Bank to fund its increase in loans and advances.
Net loans and advances increased by 11.3 per cent from E1.846 billion in the previous year to E2.054 billion in the current year.
Portfolios contributing to the loan book growth were corporate mortgage loans, SMME and Agri-business,” the statement reads in part.
ALSO READ: Eswatini launches study on gender and trade, supported by World Bank
The MD also explained that on the Non-Interest Revenue, the Bank delivered on key initiatives aimed at growing our customer base and income years.
“As a result, this saw the delivery of new digital products, such as the ShareSha digital wallet. This ensured a positive uptake from customers, growth in the overall customer base, and increases in card and digital fees.
However, the Bank experienced an insignificant improvement in its non-interest revenue but believes that such investments and driving product knowledge with customers and the public,
will yield positive results in the coming periods,” the statement from the MD reads in part.