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FirstRand declares dividend after rebound 'exceeds group's expectations'

4 March 2021 7:11 PM
Tags:
Banking
Wesbank
The Money Show
FNB
First National Bank
Bruce Whitfield
FirstRand
half-year earnings
rmb
Dividend
COVID-19
Allan Pulinger

'We've seen a strong turnaround pretty much across the board in our portfolio' - FirstRand CEO Allan Pullinger on The Money Show.

FirstRand has posted its interim results for the six months ending 31 December 2020.

The group, which owns First National Bank (FNB), RMB and WesBank, reported a 21% drop in normalised earnings.

However it is declaring an interim dividend; a bet on economic recovery which Bruce Whitfield describes as possibly the most positive signal yet from a large company.

It emphasized that the comparative period in 2019 was a pre-pandemic operating environment.

Albeit off a low base, FirstRand's rebound has positively exceeded initial expectations it said.

When comparing the six months to 31 December 2020 to the preceding six months to June 2020 (a period which included the first three months of the lockdown restrictions introduced in March 2020) there are early indications of a positive rebound in performance, particularly with regard to non-interest revenue (NIR) and impairments.

FirstRand

For the year ending 30 June, FirstRand had reported a 38% drop in profits.

RELATED: FirstRand reports 38% drop in annual profits (jumping to 78% for last 6 months)

The group has declared an interim dividend of 110c.

Bruce Whitfield interviews FirstRand CEO Allan Pullinger.

The results were comparative to what we had in December 2019 which was pre-pandemic, so of course there were a lot of red figures that didn't look good.

Allan Pullinger, CEO - FirstRand

But what really does look much, much better for us is the rolling six-month performance... We've seen a strong turnaround pretty much across the board in our portfolio.

Allan Pullinger, CEO - FirstRand

Clearly we were expecting a buildup of non-performing loans but that's turned out better than we thought, so the economy has probably recovered better than we thought as well.

Allan Pullinger, CEO - FirstRand

Capital balances are looking good; our outlook is reasonably good...

Allan Pullinger, CEO - FirstRand

We do think the economy is now on the slow journey to recovering its peaks and so that enabled us to pay a dividend.

Allan Pullinger, CEO - FirstRand

Listen to the interview on The Money Show:


This article first appeared on CapeTalk : FirstRand declares dividend after rebound 'exceeds group's expectations'




4 March 2021 7:11 PM
Tags:
Banking
Wesbank
The Money Show
FNB
First National Bank
Bruce Whitfield
FirstRand
half-year earnings
rmb
Dividend
COVID-19
Allan Pulinger

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