FirstRand (FSR) investor relations material

Executive summary

• Delivered 11% normalized earnings growth to R23.2bn and 26% NII growth for the six months ended 31 December 2025, with ROE rising to 21.1% and strong top-line performance across all major franchises.

• Positive jaws achieved as topline growth outpaced cost and credit growth, supported by high single-digit NII growth and significant NIM uplift.

• Broader Africa portfolio contributed to earnings despite macro pressures in Botswana and Mozambique; Nigeria, Ghana, and Zambia benefited from reforms.

• Strong capital position (CET1 at 14.4%) enables absorption of potential U.K. FCA Motor Commission redress impacts.

• Group’s diversified portfolio and disciplined capital/resource allocation underpinned performance despite challenging macroeconomic conditions.

Financial highlights

• Net interest income increased by 8% and non-interest revenue by 12% year-over-year; normalised earnings: R23.2bn (up 11%); normalised net asset value: R222.5bn (up 7%).

• Cost-to-income ratio improved to 48.7% (from 48.9%), with cost growth at 9% and ongoing investment in technology and distribution.

• Ordinary dividend per share increased 18% to 259 cents, reflecting strong capital generation.

• Credit loss ratio remained low at 0.86%, below the mid-point of the through-the-cycle range; credit impairment charge: R7.3bn (up 6%).

• Market capitalisation: R509bn (up 19%).

Outlook and guidance

• Guidance for FY2026 unchanged: NII expected to grow mid to high single digits, strong NIR trajectory, and improving credit outcomes.

• Mid-teen earnings growth guidance for FY2026 (excluding U.K. motor provision) confirmed.

• Cost growth to remain above inflation due to staff increases and ongoing investment in systems; effective tax rate to rise.

• Dividend payments expected to continue, even under UK FCA redress scenarios.

• No update to UK motor commission provision until FCA’s final scheme is published.