South Africa · Delayed Price · Currency is ZAR · Price in ZAc FirstRand Earnings Call Transcripts
Fiscal Year 2026
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Normalized earnings rose 16% year-over-year, driven by strong operational performance in core African franchises, despite a 5% contraction in reported earnings due to a large U.K. provision. The group exited U.K. consumer finance, improved its cost-to-income ratio, and raised its ROE and earnings growth guidance.
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Normalized earnings grew 11% with strong NII and NIR, robust capital position, and improving ROE. Guidance for high single-digit NII growth and mid-teen earnings growth for FY2026 is reaffirmed, with strong franchise performance across segments.
Fiscal Year 2025
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Normalized earnings grew 10% year-over-year, with ROE at 20.2% and strong NII and cost discipline. A significant UK Motor Commission provision was absorbed, and the CET1 ratio rose to 14%. Outlook remains positive, but regulatory and macro risks persist.
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Normalized earnings rose 10% year-over-year, with ROE at 20.8% and strong cost control driving a 48.9% cost-to-income ratio. Credit loss ratio remained low, and the group expects full-year earnings growth above its long-term target, despite UK legal uncertainties.
Fiscal Year 2024
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The AGM covered board elections, financial results, and governance, with all resolutions passed. Shareholders raised questions on employment equity, climate strategy, remuneration, and board expertise. The board committed to ongoing review of skills, governance best practices, and addressing emerging risks.
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Headline earnings rose 4% to ZAR 38 billion, with normalized earnings up 10% year-over-year excluding a ZAR 3 billion U.K. provision. Strong deposit growth, resilient NIR, and robust capital position supported an 8% dividend increase, while credit losses and retail strain remain key watchpoints.