Firstrand Ltd. (FSRJ.J): 11M26 Trading update - On track to deliver on its FY guidance

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Firstrand Ltd. (FSRJ.J): 11M26 Trading update - On track to deliver on its FY guidance

Equity Research

23 June 2026 | 6:53PM GST

Firstrand Ltd. (FSRJ.J): 11M26 Trading update - On track to deliver on its

FY guidance

Firstrand reported a voluntary trading update today. Key highlights are as follows: Kazim Andac

+971(4)214-9958 |

kazim.andac@gs.com

We think the share price reaction to the trading update should be broadly Goldman Sachs International

neutral given operating metrics were broadly in line with the guidance provided Ashwath P T, CFA

+971(4)376-3439 | ashwath.pt@gs.com

and management reiterated its guidance for FY26 on the bottom line. The group Goldman Sachs International

continues to expect the total provision for the UK motor finance commission Gokul Vinayak L

redress scheme to reach the c.£750mn level recognised in FY26, and, on the back +1(332)245-7976Goldman Sachs India| gokul.l@gs.comSPL

of this, management maintained its guidance that the provision will result in a

4–9pp decline in normalised earnings growth, with ROE also expected to be

slightly below the lower end of the target range of 18%-22%. Excluding the

additional UK provision, management indicated that underlying operating

performance remains strong and reaffirmed its previously disclosed guidance

for normalised earnings growth of 10%-15% yoy and ROE guidance of 18%-22%

for FY26. Management noted that it expects NII to be slightly better than its

previous guidance of “High-single digit” and the credit performance to be better

than expected, with the credit loss ratio likely to be at the lower end of the TTC

range of 80-110bps. However, it expects opex to be higher than its previous

guidance of “above inflation” for 2H26. Firstrand will host a pre-close