FirstRand posts ‘real growth’ in earnings despite challenging conditions
Banking group is pleased with its performance in a tough operating environment, but warns that SA’s growth prospects remain weak and uncertain
Normalised earnings, as well as basic and diluted normalised earnings per share (EPS), rose 7% for the year to end-June, FirstRand said on Thursday. FirstRand increased the ordinary dividend for the year 13% to 255c. Basic and diluted headline earnings per share (HEPS) rose 6% to 423.7c. Return on equity softened to 23.4% from 24%. "It’s very pleasing that the group can continue to produce real growth in earnings and a high return to our shareholders, despite a very challenging operating environment," said CEO Johan Burger. At a group level, total net interest income (NII) increased 7%. Non-interest revenue (NIR) rose 8%. Normalised earnings at First National Bank (FNB) rose 5% to R12.9bn and comprises 53% of total earnings. Rand Merchant Bank increased normalised earnings 11% to R6.9bn and Wesbank 2% to R3.9%. In the consumer segment, FNB customers grew 3%. Premium customers were up 7%. Total costs rose 7%, down from 11% in 2016, due to investment in insurance and asset management ...
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