Home » Led by Alan Pullinger, FirstRand earnings surpass $1 billion in H1 2022

Led by Alan Pullinger, FirstRand earnings surpass $1 billion in H1 2022

by Omokolade Ajayi

FirstRand Limited, a South Africa-based financial services group run by top banking executive Alan Pullinger, has declared headline earnings of R15.78 billion ($1.03 billion) for the first six months of its 2022 fiscal year.

According to the financial services group’s unaudited report, its headline profits, the key profit indicator in South Africa, climbed 41 percent from R11.15 billion ($729.9 million) in the first six months of 2021 to R15.78 billion ($1.03 billion) in the current quarter.

The significant improvement in headline earnings was driven by the management’s successful treasury and cost-cutting policies, which resulted in a reduction in impairment provisions from R9.4 billion ($615.5 million) last year to R4.03 billion ($263.9 million).

Aside from the impact of the group’s treasury management and cost-cutting policies on profitability, FirstRand’s solid financial performance may also be attributed to the company’s ongoing expansion across the countries in which it operates.

Net-interest income increased by five percent during the six-month period, from R32 billion ($2.1 billion) to R33.5 billion ($2.2 billion), while net-interest revenue, which includes transaction fees, commission income, and a share of profits from associates and joint ventures, increased by five percent, from R22.4 billion ($1.47 billion) to R23.7 billion ($1.55 billion).

FirstRand CEO Alan Pullinger remarked on the financial performance, statingL “This is a respectable performance from the group, with ROE at 20.1 percent rising further into the group’s stated range of 18 percent to 22 percent. Economic profit has rebounded strongly and pre-provision operating profit growth was robust at six percent.”

Pullinger noted that, with the solid recovery of the group’s operations across the board, the bank’s operating companies, FNB, RMB, WesBank and Aldermore, are well-positioned to benefit on the economic rebound.

As of press time, FirstRand shares were trading on the Johannesburg Stock Exchange for R69.94 ($4.58) a share, 3.61-percent higher than their opening price on the local bourse.

FirstRand’s market capitalization is now valued at R379 billion ($24.8 billion), while Pullinger’s 0.1-percent stake in the leading lender is presently valued at R387.2 million ($25.4 million).

You may also like

logo

The world’s premier source of news on Africa’s billionaires and UHNWIs.

Newsletter

Get the daily email to stay informed about African billionaires and UHNWIs. Get informed and entertained, for free.

Latest News

@2024 – Billionaires.Africa. All Rights Reserved.