South Africa’s FirstRand reported an 11 percent rise in adjusted half-year earnings on Thursday, supported by strong revenue growth, higher non-interest income and improving credit metrics.
The banking group said normalised earnings increased to 23.2 billion rand (about $1.41 billion) for the six months ended December 31.
FirstRand, which operates across several markets in sub-Saharan Africa as well as in Britain, said the performance reflected solid growth across its core banking operations.
Net interest income before impairments — the difference between what the bank earns on loans and what it pays out on deposits — rose 8 percent to 48 billion rand during the period.
Non-interest revenue, which includes income from fees, commissions and other banking services, climbed 12 percent to 31.9 billion rand.
The lender said the strong contribution from non-interest income played a key role in supporting overall revenue growth in the reporting period.
FirstRand also reported improved credit performance, indicating stronger asset quality and lower risk pressures within its loan book.
Banks typically monitor credit metrics closely as they reflect the ability of borrowers to repay loans and the potential risk of defaults.
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Improving credit conditions often translate into lower impairment charges, which can boost profitability.
The group said the results highlight the resilience of its diversified banking model across different markets and business segments.
FirstRand is one of Africa’s largest financial services groups, offering retail and commercial banking, investment services and insurance products.
The company operates through several well-known brands including First National Bank and Rand Merchant Bank.
Its footprint spans multiple African countries, with additional operations in the United Kingdom.
Like many banks in the region, FirstRand has been navigating a challenging operating environment marked by slower economic growth, high interest rates and pressure on household finances.
However, strong demand for banking services, combined with disciplined risk management, has helped support the sector’s profitability.
The latest results underline the group’s ability to generate steady revenue growth while maintaining stable credit quality across its operations.
