South Africa's FirstRand Steps Up Lending in Growth Push

Key Takeaways

FNB’s strategy highlights the balancing act facing South African lenders: capturing growth while managing risk in a slow economy. With GDP growth weak, banks are competing more aggressively for both retail and SME customers, especially as new entrants like OM Bank push into the market. By focusing on SMEs — where it already leads with the largest client base — and rolling out agent banking through licensed businesses, FNB aims to deepen relationships and cut costs. Expansion into Ghana and Zambia reflects FirstRand’s broader regional strategy, tapping opportunities in markets undergoing reform and infrastructure investment. Zambia’s energy push and Ghana’s restructuring offer near-term lending potential, though both require careful capital allocation. The pivot toward lending growth suggests FNB sees enough resilience in household and business balance sheets to expand credit, even as the operating environment remains challenging. For investors, the bank’s ability to grow advances without compromising credit quality will be key.