FNB reported a 5% growth in normalized profit before tax, reaching 40.3% in return on earnings for the six months ended 31 December 2023. Net interest income surged by 9%, driven by deposit franchise success. Despite a reduction in fee and commission income, FNB grew its retail customer base to 8.45 million in 2023 from 8.04 million representing a 5% increase, with private clients increasing by 8% and personal clients increasing by 4%. However, impairment charges rose by 31% amid inflation and increased interest rates, leading to a 155 bps credit loss ratio. Meanwhile, FirstRand, FNB’s parent company, saw a 6% rise in normalized earnings to R19.1 billion, with a commendable credit performance below expectations.
