FirstRand (FSR) H2 2026 earnings summary

Executive summary

• Earnings increased 16% year-over-year on a normalized basis, with ROE at 21.5%, despite a 5% contraction in reported earnings due to a large U.K. motor commission provision; dividend also grew 16%.

• The group exited the U.K. consumer finance business (Aldermore) after FCA's final redress scheme, resulting in a significant provision and Aldermore classified as discontinued; 75% decline in Aldermore earnings.

• Strong operational performance in core franchises (FNB, RMB, WesBank) drove robust earnings, improved ROE, and economic profit growth.

• Continuing operations now form the basis for future earnings growth, returns, and capital generation.

Financial highlights

• Normalized earnings up 16% year-over-year; reported earnings down 5% due to U.K. provision.

• Continuing operations delivered 13% earnings growth at a 24.9% ROE; NAV increased 9%.

• Dividend per share up 16%, supported by strong capital position and excluding U.K. provision impact.

• Economic profits grew 24% to ZAR 20 billion; cost-to-income ratio improved to 48%.

• Group margin increased by 29 basis points, with NII up 8% and NIR up 12%.

Outlook and guidance

• Medium-term ROE target range updated to 21%-26%; earnings growth expected in high single to low double digits.

• FY27 guidance: high single-digit NII growth, mid single-digit NIR growth, CLR to remain below mid-point of TTC range, lower opex growth, and ROE at top end of range.

• Focus on growth in South Africa and broader Africa, leveraging improved macro conditions and structural reforms.