• A burning issue

    The Knysna fires have shown that SA needs to be fire-aware and wary, says Mandi Smallhorne.

  • True economic freedom

    Harping on inequality and repressive rich people deflects attention from the real issues, say analysts.

  • Terry Bell's Inside Labour

    A winter of discontent looms as public sector unions gear up for pay and benefit talks.

All data is delayed
Loading...
See More

Lending boosts FirstRand profit

Sep 11 2012 09:02
Reuters

Company Data

STANDARD BANK GROUP LIMITED [JSE:SBK]

Last traded 142
Change -1
% Change -1
Cumulative volume 3662743
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

FIRSTRAND LIMITED [JSE:FSR]

Last traded 48
Change 0
% Change -1
Cumulative volume 10574155
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

NEDBANK GROUP LIMITED [JSE:NED]

Last traded 208
Change -2
% Change -1
Cumulative volume 1309294
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

FirstRand jumps on profit forecast

Absa rivals to escape its debt woes

Firstrand eyes rise in earnings

 

Johannesburg - South Africa's second-biggest bank, FirstRand [JSE:FSR] posted a 26% rise in full-year earnings helped by a strategic push to increase retail customers that has boosted income from lending.

FirstRand said diluted headline earnings per share, which exclude certain one-time items, totalled 226.9 cents in the year to end-June, compared with 179.4 cents in the previous year.

A Reuters poll of 17 analysts expected the earnings to come in 20% stronger at 216 cents.

The lender had already flagged it expected full-year profit to increase more than 20%.

"The most significant driver of earnings was the very strong operational performances from FNB and WesBank, both of which showed excellent topline growth," FirstRand said of its retail bank and vehicle finance unit.

South Africa's banking industry - dominated by heavyweights such as FirstRand, Standard Bank Group [JSE:SBK], Absa Group [JSE:ASA] and Nedbank Group [JSE:NED] - has been ramping up unsecured loans to shore up profit.

FirstRand said net interest income, the measure of a bank's earnings from loans, climbed 26% to R21.89bn.

FirstRand is aggressively courting its rivals' customers. Non-interest revenue came in lower at R29.49bn from a restated R29.57bn.

The bank is also on the prowl for acquisitions across Africa, with the latest being a $91m purchase of a 75% stake in Merchant Bank Ghana.

If successful, the operation will bring FirstRand's interests outside of South Africa to nine, including India.

FirstRand's shares have risen 31% so far this year, bring its price earnings ratio to 11.43 times, above its three main competitors.

The three rivals, who run a calendar year, have already reported first-half earnings.


*Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

 
firstrand  |  banks

NEXT ON FIN24X

Behind the sparkle

2017-06-06 10:23

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Comments have been closed for this article.
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

WhatsApp group admins in SA could face jail time their jobs

Previous results · Suggest a vote

Loading...