Banking group FirstRand is predicting business will remain subdued, though interim results show it's over the worst.

First-half headline earnings slipped 2% to 85.3 cents diluted. It held the dividend at 34 cents a share.

Overall impairments fell 13% to R3.2-billion.

The credit loss ratio fell to 1.51% of advances, from 1.64% in the year-earlier period.

FirstRand said retail bad debts had peaked, but it expects the corporate sector to remain under strain.

'Business volumes overall will remain subdued,' it adds.

'The anticipated modest growth in the South African economy will be driven mainly by further investment by government and some improvement in consumption levels. Whilst this will not drive significant growth in advances, as levels of consumer indebtedness are still at historic highs, FirstRand does expect this increased economic activity to benefit its banking franchises'.

Profits in the mainstay banking group fell 3% year-on-year, to R4.04-billion. But they more than doubled on the preceding six months.

Insurer Momentum raised profits 15% to R850-million, thanks to the recovery in equity markets.

FirstRand also highlighted Zambia, Mozambique, Tanzania and Angola as key markets.

It's previously said it wants to buy one of Nigeria's troubled lenders.

 

Summit TV is broadcasting the results presentation live at 11.
And CEO Sizwe Nxasana is among our guests tonight on Face to Face.