Table of Contents
Key Points
- Former FirstRand CEO loses $1.68 million as his 0.13% holding drops below $35 million following a 5% share decline.
- FirstRand posted a 4% rise in annual profit, despite a R3 billion provision in the UK vehicle finance investigation.
- Despite setbacks, FirstRand shares are up 7.22% year-to-date, yielding gains for long-term investors.
South African banker Alan Pullinger, former CEO of FirstRand, has seen the value of his stake in the bank drop sharply following a recent decline in its share price on the Johannesburg Stock Exchange.
Pullinger, who owns 0.13 percent of FirstRand (7,079,000 shares), has lost R29.59 million ($1.68 million) in the past two weeks, bringing the value of his stake below $35 million.
This decline reverses a $1.51 million gain between Oct. 9 and 18, when Pullinger's stake rose from R558.6 million ($31.52 million) to R585.36 million ($33.03 million).
FirstRand profit rises despite UK provision
FirstRand, which operates brands like FNB, RMB, WesBank, and Aldermore, has a strong presence in South Africa and expanded operations in the UK and Sub-Saharan Africa, solidifying its position as a major banking player.
In September, the group reported a 4 percent rise in annual profit, despite a R3 billion ($167 million) pre-tax provision tied to a UK investigation into the vehicle finance market.
Its normalized earnings grew to R38 billion ($2.17 billion) for the year ending June 30, up from R36.6 billion ($2.05 billion) the previous year.
Pullinger’s FirstRand stake slumps as shares drop 5 percent
Despite this strong financial performance, FirstRand’s shares have fallen 5.04 percent in the past 15 days, from R83 ($4.72) to R78.82 ($4.48), lowering its market cap to below $30 billion. This decline reflects investor caution.
The drop has also affected Pullinger’s holdings. His stake in FirstRand decreased from R587.56 million ($33.44 million) on October 24 to R557.97 million ($31.75 million), resulting in a loss of R29.59 million ($1.68 million).
Your Money and Your Life
Despite recent setbacks, FirstRand stock has gained 7.22 percent year-to-date, rewarding long-term investors. A $100,000 investment made at the start of 2024 would now be worth approximately $107,220, marking a $7,220 gain.
