FirstRand (FSR) H2 2025 earnings summary

Executive summary

• Achieved 10% growth in normalised earnings to R41.8bn, with ROE at 20.2% and net asset value up 11% to R217.4bn year-over-year.

• Delivered strong shareholder outcomes, with economic profit up 12% and ordinary dividend per share up 12%.

• Operational performance was robust across all major domestic franchises, including FNB, WesBank, and RMB.

• Exceeded long-term earnings growth targets despite a significant £2.7 billion UK Motor Commission provision.

• Maintained resilient top-line performance, supported by cost discipline and credit outcomes.

Financial highlights

• Net interest income grew 12% year-over-year, with net asset value up 11% and non-interest revenue up 6%.

• Cost-to-income ratio improved to 50.8%, down 180 bps year-over-year, with operating costs up only 2%.

• Credit loss ratio at 0.85%, at the bottom of the through-the-cycle range, with retail CLR improving to 1.98%.

• Dividend growth outpaced normalized earnings growth, supported by strong capital generation.

• CET1 capital ratio strengthened to 14.0%.

Outlook and guidance

• Expects to outperform long-term earnings growth targets, with ROE trending to the top end of the 18%-22% range.

• FY26 guidance includes high single-digit NII growth, higher NIR growth, and continued cost containment.

• Anticipates further easing in South African monetary conditions and positive momentum from structural reforms.

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