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FIRSTRAND BANK LIMITED - FRII FRD FRLE FRTN - Trading statement by FRBs parent in respect of the six months ending 31 December 2021

Release Date: 30/11/2021 09:00
Wrap Text
FRII FRD FRLE FRTN - Trading statement by FRB’s parent in respect of the six months ending 31 December 2021

(Incorporated in the Republic of South Africa)
(Registration number: 1929/001225/06)
JSE company code interest rate issuer: FRII
JSE company code debt issuer: FRD
JSE company code ETF issuer: FRLE
JSE company code ETN issuer: FRTN
(FRB or the bank)


FRB is a wholly owned subsidiary of FirstRand Limited (FirstRand or the group), which is listed on the JSE
Limited (JSE) and the Namibian Stock Exchange. The bank represents approximately 72% of the group’s
earnings base and 75% of group assets. FRB noteholders are therefore referred to the trading statement
released by FirstRand on the JSE Stock Exchange News Service (SENS) on 30 November 2021.

In terms of paragraph 3.4(b) of the Listings Requirements of the JSE, an issuer is required to publish a
trading statement as soon as it becomes apparent that earnings per share for the next period to be
reported on is expected, with a reasonable degree of certainty, to differ by at least 20% from that of the
previous corresponding period.

FirstRand’s headline earnings per share (HEPS) of 198.9 cents, earnings per share (EPS) of 198.5 cents
and normalised EPS of 196.8 cents for the six months ended 31 December 2020 is expected to increase
by more than 30% for the six months ending 31 December 2021 (current period). FirstRand’s HEPS, EPS,
and normalised EPS for the current period will therefore be at least 258.6 cents, 258.1 cents and 255.9
cents, respectively.

As guided at the time of the publication of FirstRand’s results for the year ended 30 June 2021, a modest
credit cycle has emerged in South Africa, particularly in the retail and commercial segments. These trends
have resulted in slightly higher advances growth, mainly in the mortgages and agriculture portfolios.
Corporate advances growth remains subdued.

In the UK strong growth has continued in the VAF business, with mortgages and asset finance also
showing a modest uplift in new business origination.

The absolute economic rebound from the depths of the Covid-19 pandemic has slowed, however, credit
impairments continue to trend down. Arrears have reduced and NPL formation is fully in line with
expectations. Due to ongoing uncertainty, the group remains conservatively positioned with regards to its
forward-looking provisions.

The rest of the income statement is broadly in line with previous guidance.

The bank and group have maintained their strong capital and liquidity positions.

FirstRand will issue a further trading statement once there is reasonable certainty regarding the extent of
the increase in earnings and the relevant HEPS, EPS and normalised EPS ranges.

The forecast financial information contained in this announcement has not been reviewed or reported on
by the bank or the group’s auditors.

30 November 2021

Debt sponsor
RAND MERCHANT BANK (a division of FirstRand Bank Limited)

Date: 30-11-2021 09:00:00
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