South African bank FirstRand is forecasting high single-digit growth in net interest income for its 2027 financial year, driven by expectations of rising credit demand as inflation slows and interest rates decline, Reuters reported on Thursday, 10 July.
The guidance pushed the bank's shares up 4.2% on the day. FirstRand, South Africa's second-largest bank by assets, also projects high single-digit to low double-digit growth in normalised earnings, after its 2026 performance was weighed down by provisions related to the United Kingdom's motor finance commission compensation scheme.
The group's net interest margin — one of the key indicators of banking profitability — improved to 5.29% for the financial year ended 30 June. Net interest income, representing the difference between interest received on loans and interest paid on deposits, rose 8% to $5.20 billion.
The bank also disclosed that its provision to cover the UK motor finance commission case stood at $1.09 billion, a figure that reflects the British regulator's final decision issued in March.
Several banks, including FirstRand, are expected to compensate British motorists affected by car loans deemed to have been mis-sold. The institution plans to sell its UK subsidiary Aldermore — a specialist bank focused on financial services for small and medium-sized enterprises and retail customers — and expects to receive a non-binding offer by the end of this month.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/09/10/mundo/africa/africa-do-sul-firstrand-preve-crescimento-do-rendimento-liquido-de-juros-em-2027/
