Shortfall expected in FirstRand's growth target

Tough economic conditions have forced one of South Africa's Big Four banking groups, FirstRand, to issue a warning that it is unlikely to meet its long-term targeted growth. FirstRand had targeted earnings of 10% above inflation in the current financial year.

Chief Executive Paul Harris says inflation and interest rates have risen more than the bank had anticipated, resulting in higher bad debt charges, particularly in its WesBank finance and FNB Card units. Internationally, equity market volatility resulted in losses in FirstRand's RMB equity trading unit.