The question for investors: how much will FirstRand’s UK motor commission redress cost, and what does it mean for this year’s results? The group says its total provision will be about £750 million, including a further pre-tax charge of £510 million for the year to 30 June 2026. That additional hit is expected to cut normalised earnings by 4–9% and nudge return on equity slightly below its stated range.
The provision relates to UK motor finance commission practices and follows mounting redress claims. FirstRand had already raised earlier provisions; this new top-up reflects updated expectations of claims and processing timelines. The bank emphasised that this is a non-operational item arising from historic conduct issues in the UK, not from current trading conditions.
Stripping out the extra redress charge, management said group operations tracked strongly through the year, highlighting resilient performance across its core businesses. That matters in South Africa, where FirstRand—via FNB—remains a bellwether for banking activity and consumer health. The update suggests the earnings drag is specific to the UK redress, while underlying momentum remains intact.
FirstRand will provide fuller detail with its year-end release. For more, read the full announcement.