FNB says its mobile business Connect “is exceeding original expectations” having launched as a mobile virtual network operator in June 2015.
The bank confirmed that as at 30 June 2017, FNB Connect had over 520,000 active mobile subscribers, up from approximately 400,000 subscribers for its mobile network service a year ago.
“Currently, Connect has acquired almost 10% of our customer base who meet product qualification criteria. This is a significant achievement as all qualifying customers have existing agreements with other service providers,” said Jacques Celliers, CEO First National Bank in a statement following the release of its financial results for the year ended June 2017.
FNB lifted its earnings by 8% domestically with profit before tax increasing by 22% in the Premium segment and by 15% in the Business segment. The bank’s Consumer segment reported a 6% decline and including the FNB Africa performance, overall FNB earnings increased 5%.
Customer numbers increased 4% from 7.48 million in June 2016 to 7.8 million in June 2017, FNB said.
“The bank’s performance is pleasing when considering the muted levels of credit demand, low levels of business and consumer confidence and subdued economic growth in the reporting period,” said Celliers.
Deposits increased by 13% (SA) driven by strong customer support for the bank’s investment and deposit accounts. The bank’s lending to home buyers seeking lower-value mortgages from FNB’s Housing Finance business increased strongly by 11%, FNB said.
“Greater efficiencies through reconfiguration of branches were achieved across the branch network with transaction minutes falling by some 20%, whilst, sales and advice minutes are becoming a larger component of branch activity.
“Efficiencies are further motivated by the bank’s strong leadership in digital and electronic banking. The bank’s e-race toward efficiencies is continuing to drive forward based on internal digitisation projects and customer-facing projects particularly in our App space,” Celliers said.
The number of customers using the FNB Banking App increased from 1.4 million in June last year to just over 1.8 million in June 2017. “However, the volume of financial transactions has significantly increased (up 68%) from 59 million in June last year to just under 100 million in June this year,” it said.