FirstRand ( (FANDF) ) has released its Q2 earnings. Here is a breakdown of the information FirstRand presented to its investors.
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FirstRand Limited, a prominent financial services group based in South Africa, operates through its customer-facing franchises FNB, RMB, WesBank, and Aldermore, offering a range of banking and financial products across various regions, including Africa and the UK.
FirstRand has reported a robust operational performance for the six months ending December 2024, with a 10% increase in normalised earnings to R20.9 billion and a return on equity (ROE) of 20.8%. The company has declared an interim dividend of 219 cents per share, reflecting its strong financial health despite challenging economic conditions.
Key financial highlights include a 12% rise in economic profits to R6.2 billion, a 9% growth in net asset value, and a 7% increase in advances net of credit impairment. The group’s credit loss ratio stood at 0.84%, better than expected, driven by strong credit performance in both South Africa and the UK. The diversified portfolio across segments and geographies contributed to these positive outcomes, with notable profit growth in FNB’s Africa franchise and UK operations.
Looking ahead, FirstRand anticipates continued strong operational performance from its franchises, supported by healthy balance sheet growth and improving credit outcomes. While the global economic environment remains uncertain, the company expects to deliver full-year earnings growth above its long-term target range, maintaining a solid ROE within its stated range.