FirstRand flags modest recession but says its earnings stayed resilient
The financial services group expects SA’s economy to contract by 0.1% in 2023
FirstRand, the group that owns FNB, WesBank and Rand Merchant Bank (RMB), says its finances are holding up even though it expects SA’s economy to contract slightly in 2023.
The financial services conglomerate said in a Wednesday trading update for the year to end-June that it still expects to deliver underlying earnings growth as advised when it published its interim results in March. Despite a macroeconomic backdrop characterised by stubborn inflation, rising interest rates and negative market reaction to SA’s stance on the Russia-Ukraine conflict, FirstRand said its return on equity (ROE) should remain at the upper end of its expected range of 18% to 22%. ..
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