South Africa's FirstRand posts expected 21 pct jump in FY earnings
JOHANNESBURG (Reuters) - FirstRand reported an expected 21 percent rise in full-year earnings on Tuesday but South Africa's second biggest lender by value did not pay out a special dividend as investors had been hoping. FirstRand said diluted normalised earnings per share, which exclude certain one-time items, came in at 331 cents from a restated 273.5 cents a year ago. The lender had given guidance that earnings would climb by as much as 22 percent. Net interest income rose 21 percent to 29.88 billion rand ($2.76 billion) while non-interest revenue from charges such as fees and commissions rose 18 percent to 36.15 billion rand. FirstRand's bad debt charges rose to 5.2 billion rand from 4.8 billion a year ago. It paid a 174 cent dividend, in line with the 173 cents analysts polled by Reuters had predicted. FirstRand has been holding on to a 10 billion rand capital buffer earmarked for expansion but has so far failed to secure any deals in promising frontier African markets. "It is still the group's philosophy to return excess capital to shareholders should it not find the appropriate opportunities," FirstRand said in its earnings statement. "The next 12 to 18 months will determine whether an acceleration of deployment in the rest of Africa can deliver the level of return the group seeks." FirstRand shares have been among the best performing banking shares this year having gained about 30 percent, the same rate as rivals Barclays Africa Group and Investec. ($1 = 10.8220 South African rand)
