FirstRand, South Africa's second-biggest bank by market value, reported a 9% rise in first-half profit, helped by a rise in loan demand and a decline in bad debt, according to a results circular on its website.
Diluted headline EPS totalled 93.3c for the six months to the end of December, compared with 85.3c a year earlier, according to the circular.
FirstRand shares were 0.26% weaker at R19.37 by 12.58pm yesterday, under-performing the JSE blue chip Top-40 index, which was flat.
Impairments, or bad debt charges, totalled R2.1-billion, compared with R3.2-billion a year earlier.
"Earnings continued to be driven by significant decreases in retail bad debts," the group said.
FirstRand said it was building on a significant recovery in profitability during the 2010 financial year.
But it said the economic recovery in South Africa was subdued.
"Given that the current South African economic environment is recovering at a very subdued rate, achieving material revenue growth in the medium term will remain challenging."
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