Proudly sponsored by

FirstRand expects FY earnings to rise by at least 20%

Share price gains on forecast.
Image: Dean Hutton/Bloomberg

JSE-listed FirstRand Limited expects its earnings for the year ended June 30, 2022 to increase by at least 20% as it sees continued growth in borrowings and stronger momentum in corporate activity, it said in a trading statement.

Th financial services provider on Friday said it expects its headline earnings per share (Heps) to increase from 480.5 cents to 576.6 cents and earnings per share (EPS) to rise from 476.9 cents to 572.2 cents.

“The credit cycle in South Africa is incrementally gaining impetus, particularly in the retail and commercial segments. Corporate activity is also showing stronger momentum, particularly in the last quarter,” FirstRand says in a statement.

“These trends have continued to support advances growth, resulting in healthy net interest income.”

Read:

All the FNB pricing, eBucks changes from July

SA revamps processes for managing distressed banks

Providing an update on its operation in the United Kingdom, the group reports that it has seen further growth in the vehicle asset finance business, as well as a growth in mortgages and asset finance.

“Activity levels in the domestic retail, commercial and corporate customer segments have increased, with fee and commission income in particular showing a higher growth trajectory. This, together with strong insurance premium growth and lower claims, is underpinning an improved non-interest revenue trend.

“Group credit impairments continue to reduce and non-performing loan (NPL) formation remains in line with expectations. Due to ongoing uncertainty, the group remains conservatively positioned with regard to its forward-looking provisions.”

Upon FirstRand releasing its earnings expectations for the full year, the market registered a positive reaction with the group’s share price rising by almost 4% during early morning trade.

AUTHOR PROFILE

COMMENTS   0

You must be signed in and an Insider Gold subscriber to comment.

SUBSCRIBE NOW SIGN IN

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Subscribe to our mailing list

* indicates required
Moneyweb newsletters

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.
INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us:

Search Articles:
Click a Company: