FNB, recently declared South Africa’s Most Valuable Brand, has delivered strong results for the financial year ending 30 June 2023, boosted by sustained growth in customers, deposits, transactional activity, and take-up of its comprehensive product range.
Against the backdrop of a tough economic climate that has strained the finances of households and businesses, FNB delivered a solid credit performance and provided increased money management support for customers.
Some of the key highlights are:
- Active customers increased by 5% to 11.49 million.
- Profit before tax increased by 10% to R31.4 billion.
- ROE improved to 41.7%.
- Deposits increased by 13% to R853.6 billion.
- Advances increased by 8% to R529.1 billion.
- Overall transaction volumes increased by 12% to 3.6 billion.
- Wealth and Investment total assets increased by 12% to R320 billion.
- Digitally active customers increased by 6% to 6.89 million.
- Digital logins totalled 1.7 billion.
- eBucks awarded increased by 9% to R2.3 billion.
- eBucks travel sales increased by 57% to R934 million.
FNB CEO Jacques Celliers says, “We are pleased with our full-year performance, as it demonstrates our ability to continue supporting our individuals, families, and business customers despite economic uncertainty. Among the many highlights are our efforts to alleviate the pressure of energy constraints on customers.
We provided more than R600 million in alternative energy funding for commercial customers in partnership with WesBank and paid-out over R1 billion through the National Treasury-backed Bounce Back Loan scheme.
We’re also delighted to see more customers endorsing our advice-led approach to providing solutions that are helpful and easily accessible through a safer digital platform. Our FNB App is the most popular digital channel for customers, accounting for 1.2 billion of the 1.7 billion total user logins.”
Significant Growth in Retail Division
The Retail division of FNB, which serves customers through its Personal and Private segments, increased advances by 7%, primarily driven by growth in residential mortgages, and deposits increased by 10%.
Focusing on small and medium-sized enterprises (SMEs) and larger businesses, FNB Commercial increased advances by 8% and delivered a robust 14% growth in deposits. The Broader Africa portfolio continues to demonstrate good growth, with profits increasing by 26% and active customers rising by 7%. Broader Africa also increased advances and deposits by 10% and 18%, respectively.
Significant Increase in Wealth and Investments
Customers continue to trust FNB with their investments, as demonstrated by a 12% increase in wealth and investment total assets to R320 billion. FNB’s WIM investment accounts increased by 5% to 629 000 and it has the leading market share of household deposits in South Africa. FNB Life’s new business annual premium equivalent (APE) increased by 18%, and the business unit has now paid out R644 million in pre-emptive Life claims to customers since launch.
Fintech Innovations Gain Popularity
FNB’s suite of fintech innovations is also gaining popularity. The nav»Home feature of the FNB App originates 24% of home loans paid out to customers and accounts for more than R52 billion in payouts since inception. In collaboration with WesBank, the nav»Car feature facilitated nearly R600 million in vehicle finance.
Through the FNB App’s nav»Care feature, customers and employees have donated R4.4 million to early childhood development centres, old-age homes, climate change, animal welfare, and housing initiatives.
Furthermore, customers are rapidly embracing safer payment methods, with over R27 billion in payments made using 4.6 million virtual cards. E-commerce activity is increasing, with the FNB App processing R18 billion in sales of third-party digital vouchers, prepaid airtime, and electricity.
Celebrating 185 Years of Business
This year also marks very special milestones for FNB, as it celebrates 185 years of being in business while being recognised as the World’s Strongest Banking Brand by Brand Finance with a Brand Strength Index rating of 93 out of 100.
FNB was also named SA’s Best Consumer Digital Bank at Global Finance’s World’s Best Digital Banks 2023 Awards, while eBucks Rewards won Africa’s Best Financial Services Loyalty Programme at the International Loyalty Awards.
“We are humbled by the recognition of our efforts in all of our markets, as it highlights our unwavering dedication to meeting the needs of our customers and the communities in which we operate. Our success is also due to the efforts of thousands of our employees, who work hard daily to understand how we can help individuals, families, and businesses fulfill their aspirations,” says Celliers.
