THURSDAY, 9.45AM:
FIRST NATIONAL has announced strong growth in treasury operations, domestic retail and commercial banking, resulting in 21,5% growth in headline earnings to R1,22 bilion for the year to September.
The group was particularly pleased at the growth in non-interest income, which now makes up 48% of income and is expected to increase. Tighter margins have kept net interest income growth down to 7% — margins are now 3,8%, when they were almost 5% five years ago.
The major problem faced by the bank has been bad debts. The increase in charges for bad debts was up a dramatic 53% from R549,2 million to R830,7 million. But the bank believes that reduced interest rates from this month will help alleviate the problem.