FirstRand's half-year earnings up 11% on strong revenue, better credit metrics
Normalised earnings rose to R23.2bn ($1.41bn) in the six months ended 31 December, the bank, which also operates across markets in sub-Saharan Africa and Britain, said.
Net-interest income before impairments - the difference between what it earns on loans and pays out on deposits — grew 8% to R48, while non-interest revenue rose 12% to R31.9bn.
The improvements were driven by strong fee and commission income growth in the retail business and a strong recovery in global markets business at the bank's corporate arm, it said.
Analysts forecast 7.4% and 7.9% increases, respectively, according to data compiled by LSEG.
The group's credit performance reflected improvements in the South African retail business, offset by the normalisation of credit costs in the UK and higher charges in broader Africa, driven mainly by macroeconomic pressures in Botswana.
FirstRand, South Africa's second-biggest bank by assets, said its credit loss ratio - a measure of bad loans against total loans - came in at 86 basis points, up from 84 basis points.
FirstRand declared a dividend of 259 cents a share, up 18%.