FirstRand first-half profit jumps 29%

Johannesburg - SA's second-biggest bank, FirstRand [JSE:FSR], reported a 29% jump in first-half profit on Tuesday as earnings from lending and fees both grew by double digits.

FirstRand said diluted headline earnings totalled 131.1c per share in the six months to end-December, from 101.5c a year earlier.

The bank said last week earnings would likely be as much as 29% higher.

High margin loans from its retail unit, First National Bank (FNB), and asset finance arm WesBank boosted net interest income before impairments 18% to R12.376bn. Non-interest income grew 17% to R15.735bn.

Like its South African rivals, FirstRand has spread north with its latest acquisition target being a 75% stake in Merchant Bank Ghana for $91m.

The $19bn bank has several African operations including a merchant banking business in the continent's most populous country.

It has been eyeing three Nigerian banks nationalised two years ago - Mainstreet, Keystone and Enterprise - for an acquisition, and has prepared a $300m war chest.   

Shares have dropped 0.5% so far this year, lagging behind a 1.6% rise by Johannesburg's Top 40 - (Tradeable) [JSE:J200] index.