FNB has shown a strategic focus on cross and upsell to existing clients resulted in an uplift in deposit and lending volumes with customer numbers at 8.2 million.
Commenting on the results, Jacques Celliers, FNB CEO said: “Our digital interface continued to offer us fresh growth opportunities, with APP logins topping 45.5 million in June this year. Sales and client interactions continue to grow on our digital platforms and we are delighted that clients have embraced the opportunity to engage on these interfaces.”
The 11% growth in profits benefitted from strong results from Retail and Commercial with contributions up 8% and 13% respectively. Profits, from Rest of Africa, increased 31% largely in line with the trajectory seen in the first half of the financial year.
Retail was buoyed by exceptional performance from the transactional business where improved volumes and upsell drove revenue. Targeted platform-based lending activity also drove strong advances growth. Insurance and Investment activities were beneficiaries of strong client adoption with revenues growing in both areas.
Rest of Africa benefitted from solid deposit growth of 8% and targeted lending with key countries also experiencing strong growth in transactional volumes. FNB retained its position as the largest retail deposit franchise in South Africa. Debit and credit card swipes volumes grew 11% and volumes across the card acquiring business saw a 17% uplift in transactions processed, excellent growth in trying market conditions.
The credit performance held up well despite the weak macroeconomic environment. Bad debts have largely tracked book growth, as anticipated the lengthening of write-off periods under IFRS9 has inflated non-performing loans stats, but the underlying credit performance is in line with the bank’s expectations.
“We are committed to being a trusted partner to our customers by providing platform based financial solutions. This allows us to drive cross and upsell opportunities that continue to deliver product take up (VSI) across the segments,” says Celliers.
“We are expanding our leadership position in our scaled and trusted data-rich platform, enabled through our banking relationship. Clearly this requires us to ensure that we get our activities into platform for increased leverage of big data toolsets and technology to help customers navigate their financial journey,” concludes Celliers.