Nedbank Eswatini spent E1.2 million supporting CSI initiatives in 2023
. . . assets grew by 5% in 2023
“NEDBANK Eswatini is a purpose-driven business. The sales engine made up of Retail, Wholesale Banking and Treasury have all contributed positively to our 2023 performance.”
This was a poignant statement made by Nedbank Eswatini Managing Director Fikile Nkosi before announcing the financial outlook of the bank in the year 2023 where it delivered a strong financial performance amidst a challenging environment.
Moreover, the bank also showed its compassionate and human side, ploughing a sum of E1.2 million on CSI initiatives in the year 2023.
“As Nedbank Eswatini, we have continued to support the communities we live and work in, by disbursing E1.2m in CSI initiatives,” Nkosi said.
She said they will continue to support the Government’s goals as outlined in the national budget for capital funding, relating to national infrastructure projects.
“We are on a digital journey and have seen the growth in the digital active base from 45 per cent to 64 per cent we also observed a 25 per cent increase in send money volumes. Innovation remains an important aspect of our growth, we managed to provide digital and other solutions to clients, including the USD CFC interest-earning accounts, Floating term deposits and as well as Negotiable certificates of Deposits which were spearheaded by our treasury department,” she added.
Nkosi added: “On the balance sheet side, our assets grew 5 per cent. We are intentionally looking to tilt our portfolio to maximise profitability and diversify our earnings portfolio. We have seen an appetite in the market for Asset Based Finance, Personal loans, as well as commercial property which are all up year on year. The conversion rates on deposits were lower than we expected. We closed with a capital adequacy ratio (CAR) of 18.4 per cent. The sectors that appear to be growing are Manufacturing, franchise business as well as construction.”
We’ll continue supporting SME’s — Nedbank
DESPITE an impairment charge of E47 million which is up by 48 per cent on the year, due to a decline in client’s ability to service debt, Nedbank Eswatini is not giving up on the small and midsize enterprises (SMEs).
Nedbank Eswatini Head of Retail, Khetsiwe Mdluli said they will continue to support SMEs as they are the driving force of the economy.
The bank’s impairment charge was up by 48 per cent due to a decline in the client’s ability to service debt, given the higher interest rates and having access to less disposable income, the segments impacted are SME and wholesale banking, this resulted in Credit Loss Ratio (CLR) of 1.2 per cent.
“We are reviewing the perimeters, and it is a space we will continue to support but we are looking and encouraging SMEs to diversify to the private sector. We are taking time to nurse them back to life especially those who depend on the government and are affected by delayed payments. We are cognizant of the fact that even internally, we have to be capacitated,” Mdluli explained.
The Managing Director, Fikile Nkosi encouraged the SMEs to have their bank accounts to demonstrate the seriousness of their businesses.
“We demonstrated during the Covid-19 pandemic era that we can take the journey with our clients and we will continue to support them because we understand the role they play in the economy sector,” she added.
As Nedbank Eswatini, we have continued to support the communities we live and work in, by disbursing E1.2m in CSI initiatives.