FNB reports profits before tax increased by 23%

Today, FNB delivered a strong set of financial results for the financial year ending 30 June 2022, reporting 10.96 million customers continuing to engage their services.

The bank reported that its performance was driven by more customers, increased transactional volumes, strong deposit growth, lower impairments, and increased disbursements to our retail and commercial customers.

Some of the key financial highlights were that active customers increased by 5% from 10.48 million to 10.96 million.

There was also report back that profit before tax increased by 23% from R23.2 billion to R28.4 billion.  Deposits increased by 13% from R666.8 billion to R755.5 billion.

Advances increased by 7% from R459.9 billion to R490.8 billion. Overall transaction volumes increased by 14% from 2.8 billion to 3.2 billion, digitally active customers increased from 6.09 million to 6.48 million and digital logins totalled 1.6 billion

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Private sector banking highlights

The bank also said that its retail segment made significant progress in its strategy to offer inclusive and personalised financial services to customers and their families, supported by unassisted money management tools like nav» Money on the FNB App, which is now used by over 2.9 million customers.

To assist retail customers with their credit needs, in the past year, the bank reported that it had disbursed a total of R52 billion in home loans. It also disbursed R23 billion in personal loans to customers to appropriately facilitate their day-to-day cashflow needs.

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FNB’s commercial segment also delivered strong results, with just under 300 000 new business accounts and strong deposit growth off the back of attractive product pricing and good innovation. Commercial advances have also increased year-on-year, with total disbursements up 35%.

In addition, FNB reported that SME customers benefited from reduced and/or zero-rated fees to assist them in starting, running and growing their businesses.

Public sector banking highlights

In Public Sector Banking, the bank continued to assist clients such as government departments, schools, and universities in digitising their services. It reportedly increased digital penetration among its public sector clients from less than 50% to more than 85% to date.

“Pleasingly our Broader Africa activities also delivered strong value to our customers with good deposit and transactional activity growth. Disciplined credit and cost management also contributed to their profit growth.

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“The portfolio’s overall performance was largely attributable to resilient results in countries such as Botswana, Namibia, Eswatini and Zambia, and a continued rebound in Mozambique.

“First National Bank Ghana continued to mature its operations in line with our strategy. Our Broader Africa countries are levering both traditional and alternative distribution channels to deliver more efficient and cost-effective financial solutions to customers,” a statement from the bank read.

Social impact

Reports show that the bank was actively involved in efforts to provide relief to flood-affected communities such as KwaZulu-Natal (KZN), as well as in providing work experience to youth through an internal FirstJob programme with 468 FirstJobbers employed, up 53% this year and resulting in a total of 2 848 youth gaining invaluable work experience to date.

Some of FNB’s “Help” to society included:

•  R181 million donated to FirstRand’s Corporate Foundations.

•  R261 million invested since 2018, to help 2 848 youth with work experience through FirstJob.

•  Over R37 million donated to communities affected by disasters.

•  R9.8 million to repair infrastructure and provide sanitation in 45 vandalised KZN schools.

•   R10 million sponsorship for the Thrive by Five Index, largest survey of early learning outcomes in SA.

• Over R3.4 million raised through nav» Care donations by employees and customers.

• 1 165 early childhood centres and Old Age Homes adopted digitally by employees and customers.