FNB online banking surges 27%

First National Bank (FNB) CEO Michael Jordaan has hailed a 27% rise in the groups online banking customers to 1.3 million.

On Tuesday (11 September) FNB highlighted a 27% increase in profit before tax to R8.29 billion for the year ended June 2012.

Jordaan tweeted on his personal Twitter account that “Lower bandwidth costs and zero subscription fees explain 27% increase in FNB Online banking customers to 1,3 million.”

FNB’s holding company, First Rand, lauded the bank’s digital performance. “It is growing its franchise strongly in both existing and new markets on the back of innovative products and delivery platforms, particularly focusing on electronic and digital channels,” it said in a statement.

“FNB produced an excellent performance for the year, increasing pre-tax profits 23% and producing an ROE of 35.0%,” First Rand said.

First Rand said that FNB South Africa has benefited from a very deliberate strategy to grow and retain core transactional accounts by offering customers a compelling value proposition – innovative products and channels at an acceptable cost to the customer.

“This proposition has been supported by various reward programmes, such as eBucks, SLOW lounges and fuel, data and airtime rewards. Innovations such as the Banking App, cellphone banking and eWallet have also attracted new customers. This has resulted in a net increase of 1.3 million active accounts in the year under review,” First Rand said.

Jordaan’s tweets echoed the group’s report:

@MichaelJordaan’s tweets

Digital drive

Tablets sold to customers is approaching 70,000, having launched this initiative in mid October 2011.

Click to enlarge

In addition, First Rand highlighted the success in cross-selling to its customers, which increased the average products per customer from 2.03 to 2.10.

“A positive outcome from this growth in customers is the commensurate increase in transactional volumes, particularly on the back of FNB’s deliberate objective to drive customers onto its electronic platforms. This resulted in non-interest revenue growth for the year of 14%,” it said.

Click to enlarge

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FNB online banking surges 27%