Staff Writer
FirstRand Limited says high commodity prices, a weaker US dollar and policy easing by the US Federal Reserve will support the macroeconomic environment in many of the countries where the group operates.
The bank said this outlook remains in place despite geopolitical tensions and policy uncertainty in major global economies. In Namibia, the FirstRand Namibia Group owns FNB Namibia and RMB Namibia.
FirstRand said the macroeconomic environment in South Africa is improving during the second half of the financial year.
Progress on structural reforms continues, including measures that allow more private sector investment and the creation of more competitive markets in energy, information and communications technologies, as well as rail and port logistics.
The bank said these developments should support better operating conditions.
“Despite some normalisation off a high base, export commodity prices are expected to continue to support foreign currency inflows.”
FirstRand said several countries in the rest of Africa where it operates are also expected to benefit from strong export commodity prices and structural reforms.
“However, Botswana will remain under pressure in the short to medium term and Mozambique continues to face significant fiscal challenges.”
The group said its performance guidance for the 12 months to June 2026 remains unchanged.
Net interest income is still expected to grow in the mid to high single digits. The bank said this growth will be supported by lending activity in South Africa, other African markets and the United Kingdom.
“As previously signalled, improvements in household affordability levels will provide support to higher levels of retail advances in the second half of the year.”
Commercial and corporate lending growth remains linked to structural reform progress and targeted sector strategies. The bank said this growth will trend slightly higher than in the first half of the year. Corporate margins will continue to benefit from Rand Merchant Bank’s distribution strategy.
FirstRand said its dividend strategy aims to provide shareholders with a sustainable payout over the long term.
The group said its capital position and returns allow for a dividend cover at the lower end of the board-approved range of 1.6 times to 2.0 times.
A dividend cover of 1.6 times represents a payout ratio of 63% and leaves the group with resources to support future growth.
