FirstRand’s half-year headline earnings rise 15%

FirstRand, the financial services group that owns FNB, WesBank, and Rand Merchant Bank, has reported a remarkable 15 per cent growth in earnings for the half-year to December 2022. The group's CEO, Alan Pullinger, spoke to CNBC Africa about the company's performance and outlook for the future. Pullinger highlighted the challenges and opportunities in the current economic environment, emphasizing the need for sustainable growth moving forward. He acknowledged the impact of external factors such as the Ghanaian sovereign bond default, which cost the company $500 million in the first half. Despite these challenges, Pullinger expressed confidence in the company's ability to achieve a similar result in the second half. However, he cautioned that the economic environment is becoming tougher, with consumers facing multiple headwinds, including inflation and higher interest rates. Pullinger emphasized the importance of corporate and commercial lending in driving economic growth, as household consumers are likely to reduce spending and prioritize savings. The company is also focusing on green financing initiatives and sees opportunities in the transition to a more sustainable economy. Pullinger highlighted the potential for increased intra-African trade and the positive outlook for countries such as Namibia, Botswana, Zambia, and Mozambique. While acknowledging the challenges in markets like Nigeria and Ghana, Pullinger remained optimistic about the long-term prospects for these countries. Overall, FirstRand is well-positioned to navigate the evolving economic landscape and capitalize on growth opportunities in the financial services sector.