FirstRand (FSR) H1 2026 earnings summary

Executive summary

• Normalised earnings rose 11% to R23.2bn for the six months ended 31 December 2025, with ROE at 21.1% and strong topline growth across all major franchises (FNB, RMB, WesBank).

• Net interest income grew 8% and non-interest revenue rose 12%, with credit loss ratio at 0.86% and net income after cost of capital up 26% to R7.8bn.

• Dividend per share increased 18% to 259 cents, reflecting strong capital generation and a CET1 ratio of 14.4%.

• All domestic and broader Africa franchises contributed to earnings, though Botswana and Mozambique faced macro pressures.

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

Financial highlights

• NII up 8%, NIR up 12% year-over-year; cost-to-income ratio improved to 48.7% and NAV up 7% to R222.5bn.

• Credit loss ratio at 0.86% (86bps), below the midpoint of the through-the-cycle range.

• Ordinary dividend per share up 18% to 259 cents; market capitalisation up 19%.

• Net income after cost of capital up 26% to R7.8bn.

• Cost growth at 9%, with ongoing investment in technology and distribution.

Outlook and guidance

• Guidance for FY2026 unchanged: NII expected to grow mid to high single digits, NIR growth to continue, and credit loss ratio to trend down.

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

• Cost growth to remain above inflation due to staff increases and ongoing investment; 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.