Double-digit earnings growth for Firstrand with strong performances by FNB, WesBank, RMB

FirstRand delivered what it says is "a commendable performance" for the first six months of its financial year, to end-December 2025.

The financial services business, whose portfolio includes FNB, WesBank and RMB, said the results achieved were characterised by strong topline growth
underpinned by solid momentum.

Headline earnings increased by 10% during the six months to R23.12 billion

HEPS or headline earning per share (basic) were up 11% to 414.9 cents.

Its leading client franchises all delivered growth and improved returns, said group CEO Mary Vilakazi.

Firstrand declared an ordinary dividend per share of 259 cents, a hefty 18% increase compared to the previous period.

This growth in dividend was enabled by high return on investment (ROE) and resultant strong capital position, said group CEO Mary Vilakazi.

Stephen Grootes asks her about the turnaround at FNB, which recorded double-digit profit growth in South Africa.

Vilakazi ascribes this growth to a focus on growing customer franchises, particularly in the lower end of the market where the competition is fierce.

"I was very pleased to see that the recent efforts to grow customers there are paying off, so overall customer growth for a franchise that is already big, for us is very good."

On the back of customer growth they got increased transactional volumes from various services and solutions offered to clients, which is really the bigger driver, Vilakazi says.

At the same time, lending for FNB and retail in particular was muted during the six months.

"We are only now starting to see an increase in demand for mortgages and personal loans, which came through in the last quarter of the year. This turn from a consumer point of view should hopefully manifest over the next six months."

Continued growth for WesBank has a lot to do with it capturing deal flow on the back of alliances built with Chinese original equipment manufacturers (OEMs) over the last two years, Vilakazi says.

"That seems to have paid off, because there is a high demand for these vehicles amongst South Africans."