FNB hikes six months profit by 11%

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FNB on Tuesday reported strong results for six months ending 31 December 2017 despite tough conditions, with profits from its retail business surging 21% while the bank’s commercial business units produced profit growth of 13%.

The bank’s retail businesses experienced excellent contributions from its client franchises; credit card, residential mortgages and the transaction franchise all showing strong double digit growth.

Credit card earnings were buoyed by a 20% increase in advances in the upper end of retail premium whilst bad debts remain well-contained across the book.

FNB’s overall profits went up 11% while profit before tax grew 12% in the domestic franchise. The bank grew its customer base with numbers now above 7.8 million. Insurance activities also saw growth with the policy numbers now well over three million.

The bank’s digital and product migration strategies continue to see progress, with switching, upsell and cross-sell strategies, and digital platform evolution saw aggressive growth in usage and App volumes surpassing online in key segments.

Jacques Celliers, FNB chief executive says that the results reflected the strong momentum that the bank has  created over the last few years.

Celliers says that their cross-sell and upsell strategy was supported by very strong new-to-bank sales performance across all key channels.

“The technology and data driven platform evolution amongst others has seen significant adoption by our customers, particularly the FNB App that experienced continued growth and increased customer usage. We are particularly pleased about the number of visitors who are experimenting with new functionality on the platform,” says Celliers.

“The 11% growth in profitability shows an all-round strong team performance. Deposit growth and strong contribution from our market leading transactional franchise underpinned an excellent domestic performance. The contribution from our African subsidiaries improved from the prior period.”