Firstrand Limited · JSE:FSR
Firstrand — Corporate Update (June 2024)
7 slides from Firstrand's corporate update, Jun 27, 2024
Slide 1: Pre-close investor update
@ FirstRand Pre-close investor update 27 June 2024
Slide 2: Better-than-expected second half performance and accounting provision results in change in guidance
Better-than-expected second half performance and accounting provision results in change in guidance Group’s long-term earnings guidance: NGDP + 0%-3% Interim results commentary was to expect earnings growth “at the bottom end of the range” Updated normalised earnings growth guidance: 1% - 5% due to;
Slide 3: UK motor commission review process provision
UK motor commission review process provision * Historical practices were compliant with the law and regulations in place at the time e Majority of the provision impacts FirstRand Bank’s London Branch and a smaller cohort in the MotoNovo front book in Aldermore « Uncertainty persists while the FCA pr
Slide 4: Credit outperformed expectations, significant positive contribution from UK
Credit outperformed expectations, significant positive contribution from UK * SA retail - impairments in specific portfolios are higher than expected * SAcommercial impairments are trending higher, but lower than guidance * SAcorporate impairments are counter-specific and within guidance ¢ Aldermore
Slide 5: Other line items that outperformed expectations in the second half
Other line items that outperformed expectations in the second half Non-interest revenue * Stronger growth in knowledge-based fees from RMB * Similar sized PE realisation as H1 ° Net fee & commission income from FNB slightly better than first half Operating expenses * Operating expenses well managed,
Slide 6: In conclusion
In conclusion FirstRand's customer franchises are in good health, remain operationally resilient and strategies are tracking as expected This stronger second half performance is a pleasing outcome, given the challenging operating environment It has allowed the group to deliver higher earnings growth
Slide 7: FirstRand
FirstRand
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