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# FirstRand Reports R38 Billion in FY2024 Normalised Earnings with ROE of 20.1%
- URL: https://www.theglobalbanker.com/firstrand-reports-r38-billion-fy2024-normalised-earnings-roe-20-1/
- Published: 2024-09-13T18:19:00.000Z
- Updated: 2026-10-02T13:33:32.000Z
- Description: South Africa's FirstRand posted normalised earnings of R38bn, up 4%, for fiscal year 2024, with ROE at 20.1% despite a R3bn UK motor finance provision.
- Author: TGB Editorial Team
- Tags: Banking News, Africa, #archive

South Africa's FirstRand reported normalised earnings of R38 billion for its fiscal year ended June 2024, a 4% increase on the prior year, as the group delivered a return on equity of 20.1% despite absorbing a provision related to the UK regulator's review of motor finance commission arrangements. The results were published on 12 September 2024.

Net interest income grew during the year. 

#### FNB EARNINGS AND UK MOTOR FINANCE PROVISION

First National Bank, FirstRand's consumer and commercial banking franchise and the largest earnings contributor within the group, grew normalised earnings by 1% to R22.0 billion during the year. 

FirstRand's UK motor finance lending, mostly the MotoNovo back book held in FirstRand Bank's London branch rather than Aldermore, the UK challenger bank FirstRand acquired in 2018, was caught up in the Financial Conduct Authority's investigation into discretionary commission arrangements in the motor finance market. The group recognised a R3 billion provision against potential liabilities arising from that investigation — a charge booked mostly in the group's Centre, while UK operations still grew normalised earnings 25%. The FCA had launched its review of historical discretionary commission arrangements in January 2024, affecting multiple UK lenders that had historically used discretionary commission structures in their broker-intermediated car finance business.

The group's Common Equity Tier 1 ratio stood at 13.5% at the financial year-end. 

#### DIVIDEND

The board approved an 8% increase in the dividend.