FirstRand shares fall after pedestrian results
by Staff Writer,
2016-03-08 09:56:01.0
FIRSTRAND traded lower on the JSE on Tuesday morning after the banking and financial services group reported pedestrian interim results to end December.
At 9.22am FirstRand was down 4.81% at R46.89, while the banking index had lost 2.73%.
The banking group said diluted headline earnings per share (HEPS) for the six months to December 31 2015 were up 3% to 185.4c compared with the year-earlier period.
Normalised earnings grew 9% and the dividend per ordinary share was up 16%. The normalised return on equity (ROE) amounted to 23.4%.
FirstRand CEO Johan Burger said the results were pleasing given that the operating environment had been even tougher than envisaged in the last quarter of last year.
"All of our operating franchises delivered resilient operational performances," he said.
The group’s income statement benefited from an increase of 9% in net interest income (NII), which was driven by growth in both advances and deposits.
First National Bank (FNB’s) retail books showed good asset growth. FNB’s normalised earnings were up 9% to R6.2bn. WesBank’s new business volumes were muted with normalised earnings growing 15% to R1.8bn over the period.
Rand Merchant Bank (RMB) lifted normalised earnings 15% to R2.8bn.
Total noninterest revenue (NIR) increased 5%.
The overall credit loss ratio ticked up to 0.95% from 0.89% and was being closely monitored, with FNB and WesBank continuing to tighten credit appetite, the group said.
© BDlive 2016
Johan Burger. Picture: BUSINESS DAY
FIRSTRAND traded lower on the JSE on Tuesday morning after the banking and financial services group reported pedestrian interim results to end December.
At 9.22am FirstRand was down 4.81% at R46.89, while the banking index had lost 2.73%.
The banking group said diluted headline earnings per share (HEPS) for the six months to December 31 2015 were up 3% to 185.4c compared with the year-earlier period.
Normalised earnings grew 9% and the dividend per ordinary share was up 16%. The normalised return on equity (ROE) amounted to 23.4%.
FirstRand CEO Johan Burger said the results were pleasing given that the operating environment had been even tougher than envisaged in the last quarter of last year.
"All of our operating franchises delivered resilient operational performances," he said.
The group’s income statement benefited from an increase of 9% in net interest income (NII), which was driven by growth in both advances and deposits.
First National Bank (FNB’s) retail books showed good asset growth. FNB’s normalised earnings were up 9% to R6.2bn. WesBank’s new business volumes were muted with normalised earnings growing 15% to R1.8bn over the period.
Rand Merchant Bank (RMB) lifted normalised earnings 15% to R2.8bn.
Total noninterest revenue (NIR) increased 5%.
The overall credit loss ratio ticked up to 0.95% from 0.89% and was being closely monitored, with FNB and WesBank continuing to tighten credit appetite, the group said.
© BDlive 2016
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