FirstRand posts 10% rise in H1 FY2025 normalised earnings to R20.9 billion, with ROE of 20.8%

FirstRand, the South African financial services group that owns FNB, RMB, WesBank and Aldermore, reported on 6 March 2025 a 10% increase in normalised earnings to R20.9 billion for the six months ended 31 December 2024, up from R19.1 billion in the comparable period. Return on equity for the half was 20.8%.

Headline earnings per share rose 10% to 374.4 cents, while basic earnings per share increased 8% to 376.4 cents. The group said economic profit grew 12% over the period.

“The board has declared an interim dividend of 219 cents per share, increasing in line with earnings,” chief executive Mary Vilakazi said. The dividend compares with 200 cents a year earlier.

CREDIT AND FNB PERFORMANCE

The group's credit impairment charge rose 8% to R6.9 billion, and the credit loss ratio edged up to 0.84% from 0.83%. FirstRand said retail credit in South Africa had trended ahead of expectations and its UK operations had delivered a much stronger credit outcome.

FNB, the group's retail and commercial banking franchise, grew normalised profit before tax by 5% to R17 billion, with a return on equity of 39.0%. FNB's credit loss ratio increased to 176 basis points from 155 basis points, although the bank said it had trended down from June 2024.

OUTLOOK

FirstRand said it expected absolute earnings in the second half of the financial year to be marginally higher than in the first half, and ROE to remain within its target range of 18% to 22%. It added that credit performance should trend better than in the first half, with the group's credit loss ratio at the lower end of its through-the-cycle range.