{"id":837343,"date":"2025-09-11T09:53:49","date_gmt":"2025-09-11T07:53:49","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=837343"},"modified":"2025-09-11T09:53:56","modified_gmt":"2025-09-11T07:53:56","slug":"fnb-hits-r1-trillion-goal","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/banking\/837343\/fnb-hits-r1-trillion-goal\/","title":{"rendered":"FNB hits R1 trillion goal\u00a0"},"content":{"rendered":"\n

FNB has seen its deposit base exceed R1 trillion despite the \u2018Big Four\u2019 bank seeing minimal growth in customer numbers. <\/p>\n\n\n\n

In its parent FirstRand\u2019s results for the year ended 30 June 2025, FNB said it delivered normalised profit before tax growth of 7% to R33.6 billion, and an ROE of 37.4% in the year under review.\u00a0<\/p>\n\n\n\n

FNB\u2019s net interest income growth of 6% resulted in growth from both advances and deposits. <\/p>\n\n\n\n

The deposit franchise in South Africa grew 7% off an already high base, with broader Africa\u2019s deposits also continuing to scale, delivering 11% growth. <\/p>\n\n\n\n

Notably, a significant milestone reached during the year is FNB\u2019s deposit base exceeding R1 trillion.<\/p>\n\n\n\n

FNB grew advances by 5%, targeting commercial customers as household affordability remained under pressure. <\/p>\n\n\n\n

The overall commercial book grew 11%, with lending anchored to targeting specific sectors and subsegments (i.e. SMEs) informed by lending capacity assessments. <\/p>\n\n\n\n

It noted that retail advances required some risk cuts in the first half of the financial year and origination strategy adjustments, resulting in 3% growth, weighted towards unsecured portfolios. <\/p>\n\n\n\n

FNB did see non-interest revenue increase by 6%, with fee and commission income increasing by 6%.<\/p>\n\n\n\n

Non-interest revenue increased due to moderate fee increases across retail and commercial accounts, new customer acquisition, improved volumes and cross-sell. <\/p>\n\n\n\n

This was partially offset by the cost of increased eBucks rewards on the back of the roll-out of new partnerships and higher transaction processing fees. <\/p>\n\n\n\n

It added that growth in secured lending remained subdued at 3% due to the pressure on customer affordability and weak demand. <\/p>\n\n\n\n

Property prices, particularly in Gauteng and KwaZulu-Natal, also continued to be depressed. <\/p>\n\n\n\n

FNB\u2019s credit impairment charges increased 3% to R10.5 billion, while the credit loss ratio decreased to 180 basis points <\/p>\n\n\n\n

This year-on-year movement was partly driven by elevated credit impairments in the commercial segment. <\/p>\n\n\n\n

This included strong growth in the SME client segment and transactional lending products in commercial at higher coverage ratios. <\/p>\n\n\n\n

There was also a rise in arrears and debt review inflows, and more accounts for a significant increase in credit risk, which reflects continued strain in specific customer segments.<\/p>\n\n\n\n

FNB\u2019s total number of clients increased by a mere 1%, as retail customers increased to 8.66 million. <\/p>\n\n\n\n

Notably, the personal segment, which includes South Africans earnings less than R750,000, reduced by 1% to 7 million customers, from 7.05 million in the prior period.\u00a0<\/p>\n\n\n\n

Private customers increased by 7% to 1.66 million, while commercial customers grew by 6% to 1.35 million. <\/p>\n\n\n

\n
\"\"<\/a><\/figure><\/div>\n\n\n

FirstRand\u2019s results<\/h2>\n\n\n\n

FirstRand said that it delivered a strong operational performance, with all of its large domestic operating businesses delivering high-quality growth in earnings and improved returns.<\/p>\n\n\n\n

This rise in earnings and returns comes despite ongoing macroeconomic challenges in the group’s jurisdictions. <\/p>\n\n\n\n

The strong performance enabled the group to absorb the impact of a further pre-tax accounting provision of R2.7 billion relating to a UK motor commission matter related to commissions given to dealerships. <\/p>\n\n\n\n

In addition, the UK court matter incurred a further R253 million (\u00a310.8 million)of legal and professional fees.<\/p>\n\n\n\n

Together, the total pre-tax impact of these two items relating to commission stands at R2.96 billion for the 2025 financial year. <\/p>\n\n\n\n

Despite the provision, normalised earnings increased 10% to R41.8 billion, and the group produced a normalised ROE of 20.2%. <\/p>\n\n\n\n

With the rise in earnings, the board increased the total dividend by 12% to 466 cents.<\/p>\n\n\n\n

The overall credit performance for the group is also broadly in line with its through-the-cycle (TTC) expectation, with the credit loss ratio at 85 bps remaining at the bottom end of its TTC range. <\/p>\n\n\n\n

The four-bps increase in the credit loss ratio was partially driven by the emerging strain in the FNB commercial book. <\/p>\n\n\n\n

FirstRand Results<\/th>2025<\/th>2024<\/th>% change<\/th><\/tr><\/thead>
Normalised earnings per share (cents)<\/strong><\/td><\/td><\/td><\/td><\/tr>
– Basic<\/td>746.4<\/td>677.2<\/td>10%<\/td><\/tr>
– Diluted<\/td>745.6<\/td>677.2<\/td>10%<\/td><\/tr>
Headline earnings per share (cents)<\/strong><\/td><\/td><\/td><\/td><\/tr>
– Basic<\/td>748.8<\/td>679.0<\/td>10%<\/td><\/tr>
– Diluted<\/td>748.0<\/td>679.0<\/td>10%<\/td><\/tr>
Earnings per share – IFRS (cents)<\/strong><\/td><\/td><\/td><\/td><\/tr>
– Basic<\/td>748.7<\/td>681.4<\/td>10%<\/td><\/tr>
– Diluted<\/td>747.9<\/td>681.4<\/td>10%<\/td><\/tr>
Normalised earnings<\/td>41 824<\/td>37 988<\/td>10%<\/td><\/tr>
Headline earnings<\/td>41 881<\/td>38 054<\/td>10%<\/td><\/tr>
Normalised net asset value<\/td>217 418<\/td>195 664<\/td>11%<\/td><\/tr>
Normalised net asset value per share (cents)<\/td>3 884.1<\/td>3 488.1<\/td>11%<\/td><\/tr>
Ordinary dividend per share (cents)<\/td>466<\/td>415<\/td>12%<\/td><\/tr>
ROE (%)<\/td>20.2%<\/td>20.1%<\/td>–<\/td><\/tr>
Net asset value per share (cents) – IFRS<\/td>3 875.4<\/td>3 484.7<\/td>11%<\/td><\/tr>
Advances (net of credit impairment)<\/td>1 748 639<\/td>1 611 541<\/td>9%<\/td><\/tr>
Credit loss ratio (%)<\/td>0.85%<\/td>0.81%<\/td>–
<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n
\n","protected":false},"excerpt":{"rendered":"

FNB has seen its deposit base exceed R1 trillion, despite its personal segment seeing a drop in customer numbers. <\/p>\n","protected":false},"author":95,"featured_media":812765,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[961],"tags":[4088,76,2214],"class_list":["post-837343","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-firstrand","tag-fnb","tag-rmb"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/837343","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=837343"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/837343\/revisions"}],"predecessor-version":[{"id":837352,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/837343\/revisions\/837352"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/812765"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=837343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=837343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=837343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}