FirstRand has posted a 10% increase in earnings for the first half of its financial year, driven by the strength of its diversified portfolio across South Africa, broader Africa, and the UK. Headline earnings reached R20.96 billion, with headline earnings per share rising to 374.4 cents from 341.4 cents a year ago. The group declared an interim dividend of 219 cents per share, also reflecting a 10% increase. The improved performance was largely due to stronger-than-expected credit performance, particularly in South Africa’s retail sector and the UK market. FirstRand’s return on equity stood at 20.8%, well within its target range of 18%-22%, while net asset value grew by 9%.
The corporate and commercial divisions helped offset the lingering strain from retail portfolios impacted by high interest rates and inflation. The Africa portfolio delivered solid results, with FNB Africa’s profit before tax growing by 9% and RMB Africa increasing by 3%. The UK operations showed even stronger momentum, reporting a 13% rise in profit before tax in Sterling. Overall, net interest income (NII) before impairments increased by 4% to R44.66 billion, with lending advances growing by 7% and deposits rising by 8%. Despite affordability challenges, commercial and corporate lending continued to expand, with FNB commercial advances growing by 12% and RMB core lending by 9%.
Looking ahead, FirstRand expects continued economic uncertainty globally due to supply chain disruptions and trade tariffs, keeping inflation at elevated levels. However, South Africa’s economic outlook appears more optimistic, with improvements in energy supply, infrastructure, and municipal services expected to lower business costs and boost investment. The bank anticipates maintaining healthy balance sheet growth in the second half, with fee and commission income remaining stable and potential gains from private equity realisations. While NII growth may slow due to the rate-cutting cycle, FirstRand remains confident in exceeding its long-term earnings growth target, driven by improving credit performance, cost management, and sustained business expansion across its key markets.