CBE records decline in Profit despite stable financial system
By Delisa Magagula
The Central Bank of Eswatini (CBE) has reported a drop in profitability for the 2024/25 financial year, with profit falling to E205.7 million from E251.5 million in the previous year.
This is according to the Bank’s latest Integrated Report, delivered by Governor Dr. Phil Mnisi, which outlined key performance highlights and developments in the financial system.
Dr. Mnisi acknowledged the decline but stressed that the overall financial sector remains resilient, supported by sound regulation and adequate capitalisation across domestic banks.
He added that the CBE’s mandate of ensuring financial stability, effective monetary policy, and the integrity of the national payments system remains firmly on track despite external and domestic pressures.
The report noted that annual headline inflation averaged 3.9 per cent during the 2024/25 financial year, down from 4.7 per cent in the previous year.
For the 2024 calendar year, inflation averaged 4.0 per cent compared to 5.0 per cent in 2023. At the close of the financial year, inflation had moderated further to 3.8 per cent.
The decline in inflation was attributed to a combination of easing food and fuel prices and improved domestic supply conditions.
The Governor noted that stable inflation was critical in supporting household purchasing power and maintaining the competitiveness of local industries.
Gross official reserves grew by 16.5 per cent, rising from E7.8 billion in March 2024 to E9.1 billion by March 2025.
However, despite this increase, import cover slipped slightly to 2.1 months compared to 2.2 months the previous year.
Dr. Mnisi explained that while the Bank successfully built up reserves during the year, rising import levels placed pressure on the import cover ratio.
He said the Bank continues to prioritise maintaining adequate reserves to meet international obligations and support investor confidence.
The report highlighted that domestic banks demonstrated stability throughout the year, supported by a strong capital base that exceeded regulatory requirements.
This resilience, the Governor said, ensured that the banking system remained sound, even in the face of global economic uncertainties.
“The strength of our banking system is a reflection of prudent regulation and effective risk management. Our financial institutions remain well-capitalised and continue to play a key role in supporting economic activity,” Dr. Mnisi stated.
A major development in the year under review was the progress of the National Payments Switch Project. The first phase, the Fast/Instant Payments Module, went live in December 2024. By the end of March 2025, five participating institutions were live on the system.
Mnisi described the project as a transformative step for the country’s financial system, enabling faster, safer, and more efficient payments.
He said the CBE would continue to expand the system to cover more financial institutions and broaden its functionality in the coming year.
The CBE also confirmed that the supply of currency remained stable throughout the year. All cash withdrawal requirements from commercial banks were met, ensuring that demand for high-quality currency notes and coins was fully satisfied.
This was achieved through close monitoring of currency circulation and timely interventions to replenish supply where needed.
While the profit decline was a notable feature of the report, Dr. Mnisi reiterated that the Bank’s financial position remained strong and sustainable.
He emphasised that the focus was not only on profitability but on fulfilling the Bank’s broader mandate of price stability, financial integrity, and support for economic growth.
“The decline in profit reflects the realities of the environment we are operating in. What is important is that the Central Bank remains financially sound, our systems are robust, and we are meeting the needs of the economy and the people of Eswatini,” he said.
He concluded by reaffirming the CBE’s commitment to strengthening financial stability, supporting innovation in the payments system, and ensuring that the Bank continues to safeguard the economy against both domestic and external shocks.