Africa-Press – Eswatini. Non-bank financial institutions (NBFIs) have continued to show resilience and sustained growth, with total assets increasing by 3.56 per cent in the second quarter of 2025.
The NBFIs assets reached E118 billion, up from E114 billion in the previous quarter.
On a year-on-year basis, the sector posted a solid 11.54 per cent growth, according to the Financial Services Regulatory Authority (FSRA) Quarterly Bulletin for the second quarter.
The FSRA noted that the overall expansion was driven by the strong performance of the capital markets, savings and credit co-operatives, development finance institutions and retirement funds, which collectively outweighed declines in some sub-sectors such as credit institutions and building societies.
Capital markets recorded a 3.25 per cent increase during the quarter, reaching a new milestone of E41.01 billion in total assets.
Life insurance written premiums increase by 5.54%
The long-term insurance (LTI) sector showed resilience, with written premiums increasing by 5.54 per cent.
This was driven by surging demand in funeral insurance (up 29.40 per cent) and individual life insurance (up 31.71 per cent).
However, claims also increased annually by 13.08 per cent, primarily from individual life and retirement fund products, which accounted for over 44 per cent of total claims.
The loss ratio stood at 59.45 per cent, up 5.75 percentage points from the previous quarter, but improved by 1.42 points year-on-year.
While the sector remained profitable, the net equity position declined by 17.75 per cent year-on-year, attributed to higher claims and increased operational costs.
DFIs register growth in lending, equity
Development Finance Institutions (DFIs) posted notable gains in the second quarter, buoyed by stronger lending activity and higher reserves.
Income from lending increased by 7.82 per cent year-on-year, while loans and advances rose by 8.8 per cent.
The FSRA also reported a 1.49 percentage point quarterly improvement in the NPL ratio, while the net equity position increased by 2.23 per cent, reflecting the positive impact of accumulated reserves and improved capital adequacy.
Meanwhile, the building societies sub-sector saw a slight reduction in assets, falling by 2.21 per cent from E3.68 billion to E3.63 billion due to a slowdown in lending activity. An annual decline of 1.61 per cent was also recorded.
SACCOs strengthen liquidity, credit position
The savings and credit co-operative societies (SACCOs) sector also showed positive momentum, with assets expanding by 3.78 per cent to E3.25 billion, up from E3.13 billion in the previous quarter.
Year-on-year, the sector recorded 10.80 per cent growth, driven by stronger liquidity positions and improved investment returns.
Credit provision remained steady as loans and advances grew by 1.10 per cent on a quarterly basis and 8.16 per cent annually.
The sector also improved its asset quality, with non-performing loans (NPLs) declining by 0.54 percentage points quarter-on-quarter and 3.94 percentage points year-on-year – signalling better loan management and recovery
Retirement funds bolstered by local investments
Retirement funds recorded one of the strongest performances among NBFIs, with assets increasing by 4.71 per cent quarter-on-quarter and 10.41 per cent year-on-year.
The growth was driven by improved performance in listed equities and property collective investment schemes, as well as a notable rise in local unlisted equity investments.
Local asset holdings remained stable at 48 per cent, signalling growing confidence in domestic markets.
The sector also saw a 38.31 per cent annual surge in investment income, although management expenses increased sharply – with professional fees rising by over 90 per cent annually.
Despite broad-based growth across most NBFI sectors, the Eswatini Stock Exchange (ESE) All-Share Index declined by 2.68 per cent, from 488.49 in the first quarter to 475.38 in the second quarter. The decline was primarily driven by a 25.53 per cent fall in Greystone Partners’ share price.
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