• FULL mini budget speech

    Read the full mini budget speech delivered by Finance Minister Pravin Gordhan.

  • #FeesMustFall reporting

    What are the real issues and whose voices are being suppressed by social media, asks Solly Moeng.

  • Matchmaker businesses

    Multisided platforms can create huge value for society and fortunes for entrepreneurs, says Ian Mann.

All data is delayed
See More

Lending boosts FirstRand profit

Sep 11 2012 09:02

Company Data


Last traded 142
Change 1
% Change 1
Cumulative volume 2574390
Market cap 0

Last Updated: 26-10-2016 at 05:07. Prices are delayed by 15 minutes. Source: McGregor BFA


Last traded 47
Change 0
% Change 0
Cumulative volume 9610461
Market cap 0

Last Updated: 26-10-2016 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA


Last traded 220
Change 2
% Change 1
Cumulative volume 1025636
Market cap 0

Last Updated: 26-10-2016 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

FirstRand jumps on profit forecast

Absa rivals to escape its debt woes

FNB ramps up expansion drive

Higher lending income propels FirstRand

FNB sees strong growth in unsecured loans

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


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

Do you use all your downloaded apps on your smartphone?

Previous results · Suggest a vote