FirstRand HEPS inches up 6%

Shares of FirstRand surged by 2.6% following the release of the company's latest earnings report, which revealed a 6% increase in headline earnings per share. Alan Pullinger, the Outgoing CEO of FirstRand, joined CNBC Africa to discuss the company's performance and future outlook. Reflecting on the operating environment, Pullinger acknowledged the challenges faced in the last six months. The rise in interest rates, with the repo rate at 8.25%, has made the market conditions tough. Despite the hurdles, FirstRand managed to grow its balance sheet, focusing on lending to large corporates and SMEs, with only 7% growth in the retail sector, reflecting the challenges at the consumer level. The solid performance on the deposit side translated into strong net interest income and positive cost of credit for the bank. Going forward, Pullinger expressed confidence in the credit perspective and highlighted the 6% growth in normalized earnings, which rewarded shareholders with a solid return on equity and dividend. When questioned about the UK motor finance provision, Pullinger emphasized that it's early days in the FCA process and reassured investors about the bank's approach to the investigation. As he reflected on his career highlights, Pullinger credited the success to the excellent team at FirstRand, navigating through crises like the Global Financial Crisis and the challenges posed by the COVID-19 pandemic. Looking ahead, Pullinger plans to take a break and unwind, enjoying some time off before considering his next steps. With a capable team in place, led by Mary Vilakazi, Pullinger expressed confidence in the future of FirstRand. His tenure ends on a high note, with gratitude for the support and teamwork that led to the company's success.