South African banker Alan Pullinger’s stake in FirstRand declines by nearly $2.7 million in 38 days

Despite reporting a stellar financial performance at the end of its fiscal year in 2022, FirstRand shares on the Johannesburg Stock Exchange have dropped by more than 12 percent in the past 38 days, resulting in losses totaling millions of dollars for shareholders, including its CEO Alan Pullinger.

The market value of Pullinger’s stake has decreased by almost $2.7 million over the last 38 days, according to data tracked by Billionaires.Africa.

FirstRand’s CEO and a millionaire banker, Pullinger owns a total of 5,634,679 ordinary shares, or 0.1 percent of the financial services group.

FirstRand Limited, the largest financial services company in Africa by market capitalization, was trading at R61.8 ($3.44) per share at the time this report was being written. This is 1.84-percent less than the bank’s opening price on the local bourse this morning.

Despite reporting a strong financial performance at the end of its 2022 fiscal year, shares in the South African-based financial services providers have fallen more than 12 percent in the past 38 days, falling from R70.4 ($3.92) on Aug. 16 to R61.8 ($3.44) at the time this report was being written.

The market value of Pullinger’s stake has decreased by R48.46 million ($2.69 million) in the past 38 days as a result of the recent decline in its share price, falling from R396.7 million ($22.08 million) on Aug. 16 to R348.22 million ($19.38 million).

The $1.46-million dividend that he is expected to receive from the R26.2 billion ($1.49 billion) total dividend distribution that was authorized by the bank’s board of directors will help offset some of the $2.69-million decline in his stake.

FirstRand Limited is Africa’s largest financial services group in terms of market capitalization. Its integrated financial services portfolio comprises FNB, RMB, WesBank, and Aldermore, as it maintains active operations in South Africa, the UK, and regional markets in Sub-Saharan Africa.

The group’s most recent annual report shows that its profit risen by 22.3 percent to R34.64 billion ($1.97 billion) at the end of the 2022 fiscal year from R28.31 billion ($1.61 billion) the year before.

As a result of the robust financial results, the banking group’s board announced the highest annual dividend in its history of R3.42 ($0.1948) per share, as well as a special dividend of R1.25 ($0.071) per share, resulting in a total distribution to shareholders of R26.2 billion ($1.49 billion).