by Renee Bonorchis
(Bloomberg) — FirstRand Ltd., Africa’s biggest bank by market value, said fiscal full-year profit climbed 17 percent after its retail unit boosted income from fees and its investment bank boosted its balance sheet.
Net income rose to 21.6 billion rand ($1.56 billion) in the 12 months through June, from 18.4 billion rand a year earlier, the Johannesburg-based company said Thursday in a statement. Earnings per share excluding one-time items increased 12 percent to 3.81 rand, exceeding the mean estimate of 17 analysts surveyed by Bloomberg.
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FirstRand, which operates an investment bank, a retail lender, a vehicle-financing unit and an asset-management business, is considering quickening its expansion in Kenya and developing its insurance business while growth in the South African economy deteriorates. It appointed Johan Burger to take over from Sizwe Nxasana as chief executive officer from next month. Burger joined the group in 1987.
“The group believes its franchises have the appropriate strategies in place to produce resilient operational performances against this difficult economic backdrop,” FirstRand said in the statement. “The strength of its balance sheet and the resilience of its diverse income streams should allow FirstRand to continue to deliver sustainable and superior returns to shareholders.”
