Bloomberg News

FirstRand Bad Debts Peak, Won’t Affect Future Earnings

February 28, 2012

(Corrects to say decrease in second paragraph.)

FirstRand Ltd. (FSR) said bad debts on the South African lender’s books had peaked and wouldn’t affect future earnings.

The bank loses 360 million rand for every 50 basis-point decrease in interest rates, Chief Operating Officer Johan Burger told a results presentation in Johannesburg today.

The Johannesburg-based financial services company has enough capital to withstand the impact of the Basel III rules on capital adequacy, Burger said.

Group return on equity may rise and FirstRand is targeting 18 percent to 22 percent, he said.

To contact the reporter on this story: Renee Bonorchis in Johannesburg at rbonorchis@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net


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