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FirstRand Limited CEO confirms improved performance in audited 30 June 2021 results

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FirstRand Limited has issued its provisional audited results and cash dividend declaration for the year ended 30 June 2021, reporting an improved performance producing R4.9 billion economic profit.

On Thursday, 16 September 2021, FirstRand Limited issued its provisional audited results and cash dividend declaration for the year ended 30 June 2021. Group CEO, Alan Pullinger stated that the level of improvement in the group’s performance demonstrated the quality of its portfolio of business and its ability to capitalise on the economic rebound taking place.

Basic and diluted normalised earnings reportedly increased by 54 percent to R26 551 million, while headline earnings increased by 56 percent to R26 950 million. Normalised net asset value per share increased by 10 percent to 2 703.4 cents from 2 453.1 cents in 2020.

The group produced R4.9 billion in economic profit, while pre-provision operating profit increased by 5 percent. Normalised return on equity increased 18.4 percent from 12.9 percent in 2020. The group directors for FirstRand Limited also declared a gross cash dividend of 263.0 cents per ordinary share.

What are Pullinger’s thoughts on the improved performance by FirstRand?

Pullinger noted that while growth could be attributed to the previous year’s base effect, due to increased impairments raised by the impact of the pandemic, the group’s pre-provision operating profit, excluding impairments, increased by 5 percent. This is despite a tough operating environment.

How did the respective banks under FirstRand perform?

FNB’s pre-tax profits increased by 32 percent to R23.5 billion, with return on equity improving by 33.3 percent. RMB reported a 24 percent increase in pre-tax profits to R10 billion, delivering an 18.7 percent ROE. Wesbank’s pre-tax profits were reported to have increased by 43 percent to R1.7 billion

What future prospects is FirstRand anticipating?

FirstRand anticipates a modest credit cycle to emerge and a gradual lift in business and consumer confidence, with a pent-up private sector demand. It also expects to reach peak earnings in 2023 and to revert back to its long-term target of delivering growth in earnings.

Mahlohonolo Lakaje
[email protected]

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