FirstRand reports 11 percent rise in half-year profit
South African lender FirstRand reported an 11% increase in half-year normalised earnings to 23.2 billion rand. The bank raised its dividend by 18% on Thursday.
FirstRand Limited has reported an 11% increase in its half-year normalised earnings, supported by robust topline growth and a significant contribution from non-interest revenue. The financial services group, which is headquartered in South Africa, saw its earnings climb to 23.2 billion rand for the six-month period ending December 31, compared to 20.9 billion rand during the same period the previous year.
The bank's performance was further bolstered by improving credit metrics across its diverse portfolio. Based on the current exchange rate of the US Dollar / South African Rand, the normalised earnings equate to approximately $1.41 billion. Shareholders are set to benefit from the strong financial results as the bank declared an interim dividend of 259 cents per share, representing an 18% increase from the prior year.
Normalised earnings rose to 23.2 billion rand in the six months ended December 31 from 20.9 billion rand a year earlier, driven by strong topline growth, excellent contribution from non-interest revenue and improving credit metrics.
In addition to its domestic operations, the lender maintains an active presence in several sub-Saharan African markets and the United Kingdom. The company attributed the positive half-year results to a combination of operational efficiency and a recovery in credit trends.
