Rand Merchant Bank (RMB) was another standout performer. Earnings increased 15% to R12.3 billion, with return on equity reaching 23.0%. RMB benefited from healthy client activity across its corporate and investment banking operations, reinforcing its importance as a diversified earnings contributor alongside FNB.

WesBank was the only major business unit to experience weaker performance, with earnings declining 4% to R2.3 billion. Despite the softer outcome, the business still produced an 18.5% return on equity in what remains a challenging vehicle finance environment.

FirstRand’s credit loss ratio declined to 1.05%, down from the prior year, indicating that customers and businesses generally remained resilient despite high fuel and administered costs. The ratio sits comfortably within the group’s through-the-cycle range and suggests that credit risk is being managed effectively. Management did, however, take a cautious stance by increasing forward-looking impairment provisions by R1.1 billion to reflect elevated geopolitical uncertainty, including the impact of higher oil prices following conflict in the Middle East.

One of the most significant strategic developments announced during the year was FirstRand’s decision to exit the Aldermore business in the United Kingdom. The group classified Aldermore as a discontinued operation and has initiated a formal disposal process, with binding offers expected by December 2026. The decision follows the UK Financial Conduct Authority’s motor finance redress scheme.

Looking ahead, technology remains central to FirstRand’s strategy. The group has centralised its technology and engineering functions to eliminate duplication and improve execution. More than 3,000 engineers are already using AI-enabled tools, while partnerships such as the collaboration with Optasia are helping strengthen lending and credit-scoring capabilities. These initiatives should enhance both customer experience and operational efficiency over time.

Strong underlying franchises, disciplined risk management and prudent capital allocation continue to strengthen FirstRand’s businesses. However, global uncertainty, regulatory developments, and an increasing number of new entrants and competitors remain important watchpoints for the group.