• Super Admin
• 07 Mar, 2026

FirstRand is exploring opportunities in southern and western Africa as the continent's biggest bank by market value looks to grow their contribution to earnings. The Johannesburg-based firm is considering expanding its operations in Ghana and Nigeria as it seeks to become a top-three lender in the two key West African markets. "From a macroeconomic point of view, Ghana and Nigeria are actually going through a much better period than they've had in the past because of the structural reforms they embarked upon, so we are looking very constructively at growing in those markets," FirstRand CEO Mary Vilakazi said in an interview with Bloomberg. The bank is also mulling ways to grow its business in Zambia to cement its No. 1 ranking in the southern Africa nation. FirstRand acquired Standard Chartered's wealth and retail-banking business in the country last year. "It's actually one of the standout performers" in the second half of 2025, Vilakazi said. "The ability to get further load and scale in that business is the kind of thing that we would like to see more of." Its expansion plan comes as peers in South Africa look to grow their operations on the continent. Nedbank announced in January that it agreed to acquire a majority stake in Kenya's NCBA to help it expand in East Africa, home to some of the continent's fastest-growing economies. Meanwhile, Absa bought Standard Chartered's wealth and retail-banking unit in Uganda. FirstRand has said it may capitalize on Kenya's decision to ramp up minimum capital requirement for banks 10-fold by 2029 to expand in East Africa's biggest economy. "We're still watching that consolidation activity in Kenya and we are always in discussions to see whether a good entry opportunity offers itself for the group," Vilakazi said. But FirstRand's focus will remain on its primary market of South Africa, which made up 81% of earnings in the six months through December. FirstRand expects growth in gross domestic product in South Africa to remain modest at about 1.8% annually over the next three years, accelerating to as much as 3% in three to five years if reforms in the nation's frayed energy, infrastructure, transport and logistics sectors take hold and political stability is maintained. "It is possible to structurally lift our GDP growth rate, but it will require a lot more effort for us to get to that 3 to 5% growth," she said. The focus on low inflation, political stability and attention on improving economic outcomes has created a supportive environment for both businesses and consumers in South Africa, Vilakazi said. The nation is already seeing demand for corporate credit rising, and has recorded a pick-up in private credit extension in retail. This "will create an environment that is much better for us than we have operated in before," she said. Earlier, the lender announced that interim profit rose to a record as it earned more from fees and commissions and as growth in loans boosted revenue. Normalized earnings jumped 11% to R23.2 billion in the six months through December from a year earlier. FirstRand also declared an interim dividend of R2.59 per share. Non-interest revenue climbed 12% as sustained momentum in the insurance business, a significant rebound in the performance of the global-markets unit and further private equity realizations lifted fees and commissions. Net interest income grew 7.7%, driven by improving advances growth from its lending books in South Africa, broader Africa and the UK. South Africa's central bank resumed its rate-cutting cycle in November, easing borrowing costs for consumers in the continent's biggest economy. While the bank's projection model showed further reductions this year, the outbreak of war in the Middle East has seen interest-rate traders price in a chance of a hike as the conflict raises energy prices and revives concerns about faster price growth. FirstRand will update shareholders on the fate of its UK unit once the nation's Financial Conduct Authority publishes final rules on compensation that banks have to pay consumers over claims they were missold car loans, it said. The FCA will likely provide details on the final redress plan at the end of the month. Source: https://dailyinvestor.com/banking/123197/top-south-african-bank-eyes-african-expansion/