FirstRand (FSR) H2 2025 earnings summary

Executive summary

• Achieved 10% growth in normalized earnings to R41.8bn and ROE of 20.2%, despite a £240 million U.K. Motor Commission provision and challenging macro conditions.

• Net asset value increased 11% to R217.4bn, and economic profit rose 12% to R11.5bn.

• Delivered strong shareholder outcomes with ordinary dividend per share up 12%.

• Strong performance from domestic franchises, with FNB, WesBank, and RMB highlighted for robust earnings and ROE.

• Broader Africa portfolio delivered healthy ROE of 23% and economic profits of R1.6bn.

Financial highlights

• Net interest income grew 12%, net asset value up 11%, and cost-to-income ratio improved to 50.8%.

• Non-interest revenue grew 6%, with fee and commission income up 6% and trading/fair value income up 14%.

• Credit loss ratio improved to 85 bps, at the bottom of the through-the-cycle range.

• CET1 capital ratio increased to 14%, supported by strong earnings and risk-weighted asset optimization.

• Dividend per share increased 12% to 466 cents, with dividend cover at 1.6x–1.7x.

Outlook and guidance

• Expectation of further easing in South African monetary conditions and improved inflation certainty.

• ROE anticipated to trend to the top end of the 18%-22% target range, with strong operational performance expected to continue.

• FY26 expected to deliver high single-digit NII growth, higher NIR growth, and continued cost containment.

• Positive jaws expected from top-line growth and cost management.

• Ongoing global policy and economic uncertainty, and tough macro conditions in Botswana and Mozambique, remain key risks.