S. Africa’s FirstRand earnings outlook boosted by economic rebound
Adds detail, estimate, shares
JOHANNESBURG, June 7 (Reuters) – South African lender FirstRand FSRJ.J on Monday said its second-half profits would be higher than previously, citing a faster-than-expected economic rebound.
The bank warned investors in March, when he said his first half performance exceeded his expectations, don’t expect a similar level of absolute gains over the past six months.
However, on Monday, he said the forecast, which was based on expectations that lockdowns in December and January would lead to an increase in bad debts, needed to be updated.
“The group saw the (South African) economy rebound much faster than initially expected and that (…)
He now expects his earnings per share – the main measure of earnings in South Africa – for the year to June 30 to be probably more than 35% higher than the 308.9 cents reported a year earlier, a continued its commercial statement.
He said, however, that its cost growth would be above the 1% seen in the first half of the year, with an increase for the year expected to be less than single digits, and loan growth remained subdued, reflecting its cautious appetite for money. risk.
He said he would issue a new trade statement at a later stage.
Its shares were up 1% at 07:18 GMT.
(Reporting by Emma Rumney; editing by Promit Mukherjee and Jason Neely)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.