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FirstRand boosts earnings

Sep 13 2011 08:58 Reuters

Company Data

Top 40 [JSE : J200]

Last traded R29,074.19
Change R-63.65
% Change -0.22%
Cumulative volume 93.53m
Market cap R0.00

Last Updated: 25/05/2012 at 19:33. Prices are delayed by 15 minutes. Source: McGregor BFA

 

Firstrand Ltd [JSE : FSR]

Last traded R25.00
Change R-0.06
% Change -0.24%
Cumulative volume 12.14m
Market cap R140.95bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

Mmi Holdings Ltd [JSE : MMI]

Last traded R16.71
Change R-0.10
% Change -0.59%
Cumulative volume 2.64m
Market cap R25.13bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

Nedbank Group Ltd [JSE : NED]

Last traded R168.34
Change R-0.80
% Change -0.47%
Cumulative volume 299,281
Market cap R85.43bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

Absa Group Limited [JSE : ASA]

Last traded R150.00
Change R0.00
% Change 0.00%
Cumulative volume 1.30m
Market cap R107.73bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

Standard Bank Group Ltd [JSE : SBK]

Last traded R113.00
Change R-0.10
% Change -0.09%
Cumulative volume 3.20m
Market cap R179.93bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Johannesburg - FirstRand [JSE:FSR], South Africa's second-biggest bank, posted a 22% increase in full-year earnings on Tuesday, buoyed by a decline in bad debts and said it would issue a special dividend after selling off two insurance units.

FirstRand said normalised earnings per share, which exclude certain one-time items, totalled 179.4 cents in the year to end-June, compared with a restated 146.9c in the same period a year earlier.

The bank considers normalised earnings as the best measure of its profit.

FirstRand said it would pay a special dividend of 70c, following the sale of its insurance units.

FirstRand in May completed its R3.75bn sale of a 45% stake in insurer OUTsurance to RMI Holdings . It previously spun off stake in insurer Momentum, which became part of MMI Holdings Limited [JSE:MMI].

Net interest income, the measure of a bank's earnings from lending, came in at R17.37bn, from R16.35bn a year earlier.

South Africa's banking industry - dominated by FirstRand and rivals Standard Bank Group [JSE:SBK], Absa Group [JSE:ASA] and Nedbank Group [JSE:NED] - is slowly recovering from a recession that caused massive job losses and sparked a surge in bad loans. 

FirstRand has been outpacing rivals in managing impairments, or bad debts, an area that has been one of chronic weakness for South Africa's "big four" commercial banks.

"We were comfortable with the improvement of the impairments, it was stronger than the other big four banks ... the quality of loan book continues to improve," said Faizal Moolla, an analyst at Avior Research in Cape Town.

"They are actively managing the loan book, making sure they collect all outstanding amounts and having sufficient security in place."

Shares of FirstRand are up about 5% so far this year, making them the second-best performer among South Africa's top 4 banks. Shares of smaller rival Nedbank are up 5.4%.

FirstRand shares gained as much as 5.24% to R21.10 on Tuesday morning. By 07:13 GMT, the stock was 3.49% higher at R20.75, outpacing a 1% rise in the JSE Top 40 - (Tradeable) [JSE:J200] blue-chip index .

 

 
 
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