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FirstRand Limited, also referred to as FirstRand Group, is the holding company of FirstRand Bank, and is a financial services provider in South Africa. It is one of the financial services providers licensed by the Reserve Bank of South Africa, the national banking regulator.


Overview

Listed on the JSE and the Namibian Stock Exchange, FirstRand Limited is one of the largest financial institutions in South Africa, and provides banking, insurance and investment products and services to retail, commercial, corporate and public sector customers. In addition to South Africa, the group operates in eight key African countries, namely,
Botswana Botswana, officially the Republic of Botswana, is a landlocked country in Southern Africa. Botswana is topographically flat, with approximately 70 percent of its territory part of the Kalahari Desert. It is bordered by South Africa to the sou ...
,
Namibia Namibia, officially the Republic of Namibia, is a country on the west coast of Southern Africa. Its borders include the Atlantic Ocean to the west, Angola and Zambia to the north, Botswana to the east and South Africa to the south; in the no ...
,
Swaziland Eswatini, formally the Kingdom of Eswatini, also known by its former official names Swaziland and the Kingdom of Swaziland, is a landlocked country in Southern Africa. It is bordered by South Africa on all sides except the northeast, where ...
,
Lesotho Lesotho, formally the Kingdom of Lesotho and formerly known as Basutoland, is a landlocked country in Southern Africa. Entirely surrounded by South Africa, it is the largest of only three sovereign enclave and exclave, enclaves in the world, t ...
,
Zambia Zambia, officially the Republic of Zambia, is a landlocked country at the crossroads of Central Africa, Central, Southern Africa, Southern and East Africa. It is typically referred to being in South-Central Africa or Southern Africa. It is bor ...
,
Mozambique Mozambique, officially the Republic of Mozambique, is a country located in Southeast Africa bordered by the Indian Ocean to the east, Tanzania to the north, Malawi and Zambia to the northwest, Zimbabwe to the west, and Eswatini and South Afr ...
,
Tanzania Tanzania, officially the United Republic of Tanzania, is a country in East Africa within the African Great Lakes region. It is bordered by Uganda to the northwest; Kenya to the northeast; the Indian Ocean to the east; Mozambique and Malawi to t ...
,
Ghana Ghana, officially the Republic of Ghana, is a country in West Africa. It is situated along the Gulf of Guinea and the Atlantic Ocean to the south, and shares borders with Côte d’Ivoire to the west, Burkina Faso to the north, and Togo to t ...
and
Nigeria Nigeria, officially the Federal Republic of Nigeria, is a country in West Africa. It is situated between the Sahel to the north and the Gulf of Guinea in the Atlantic Ocean to the south. It covers an area of . With Demographics of Nigeria, ...
. FirstRand Bank has branches in
London London is the Capital city, capital and List of urban areas in the United Kingdom, largest city of both England and the United Kingdom, with a population of in . London metropolitan area, Its wider metropolitan area is the largest in Wester ...
,
Guernsey Guernsey ( ; Guernésiais: ''Guernési''; ) is the second-largest island in the Channel Islands, located west of the Cotentin Peninsula, Normandy. It is the largest island in the Bailiwick of Guernsey, which includes five other inhabited isl ...
and
India India, officially the Republic of India, is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area; the List of countries by population (United Nations), most populous country since ...
. FirstRand executes its strategy through a portfolio of leading financial services franchises; Rand Merchant Bank (RMB), the corporate and investment bank; First National Bank (FNB), the retail and commercial bank; WesBank, an instalment finance provider; and Ashburton Investments, the group's asset management business. The group has its headquarters in
Johannesburg Johannesburg ( , , ; Zulu language, Zulu and Xhosa language, Xhosa: eGoli ) (colloquially known as Jozi, Joburg, Jo'burg or "The City of Gold") is the most populous city in South Africa. With 5,538,596 people in the City of Johannesburg alon ...
, South Africa. FirstRand is one of the five largest banking groups in South Africa and
sub-Saharan Africa Sub-Saharan Africa is the area and regions of the continent of Africa that lie south of the Sahara. These include Central Africa, East Africa, Southern Africa, and West Africa. Geopolitically, in addition to the list of sovereign states and ...
.


History

The FirstRand group's history traces back to the 1970s as an
investment bank Investment is traditionally defined as the "commitment of resources into something expected to gain value over time". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broade ...
. The group as currently was established on 1 April 1998, through a merger of the financial services interests of Anglo American Corporation of South Africa Limited (now
Anglo American plc Anglo American plc is a British Multinational corporation, multinational mining company with headquarters in London, England. It is the world's largest producer of platinum, with around 40% of world output, as well as being a major producer of ...
) and RMB Holdings (RMBH) in order to achieve the objective of a unified financial services grouping. These financial services interests were First National Bank Holdings, Momentum Life Assurers Limited ("Momentum", now part of MMI Holdings) and the Southern Life Association Limited ("Southern Life"), all of which were listed on the JSE. FNB and Southern Life were constituted as wholly owned subsidiaries of Momentum which was the vehicle to affect the merger. Momentum changed its name to FirstRand Limited and was listed on the Johannesburg Stock Exchange on 25 May 1998 with Anglo American and RMB Holdings holding 20.43% and 25.03% of the authorised capital of FirstRand respectively. Anglo American has since shed its entire shareholding. Post-merger events saw the merging of Rand Merchant Bank and FNB to form FirstRand Bank Limited, with the two units remaining to trade as divisions of FirstRand Bank Limited and the transfer of Momentum's insurance business into that of Southern Life, to form FirstRand Insurance Limited. FirstRand is listed as a "locally controlled bank" by the
South African Reserve Bank The South African Reserve Bank (SARB) is the central bank of South Africa. It was established in 1921 after Parliament passed an act, the "Currency and Bank Act of 10 August 1920", as a direct result of the abnormal monetary and financial condi ...
, the national banking regulator. The group has subsidiaries in South Africa and in the countries of
Botswana Botswana, officially the Republic of Botswana, is a landlocked country in Southern Africa. Botswana is topographically flat, with approximately 70 percent of its territory part of the Kalahari Desert. It is bordered by South Africa to the sou ...
,
Mozambique Mozambique, officially the Republic of Mozambique, is a country located in Southeast Africa bordered by the Indian Ocean to the east, Tanzania to the north, Malawi and Zambia to the northwest, Zimbabwe to the west, and Eswatini and South Afr ...
,
Namibia Namibia, officially the Republic of Namibia, is a country on the west coast of Southern Africa. Its borders include the Atlantic Ocean to the west, Angola and Zambia to the north, Botswana to the east and South Africa to the south; in the no ...
,
Lesotho Lesotho, formally the Kingdom of Lesotho and formerly known as Basutoland, is a landlocked country in Southern Africa. Entirely surrounded by South Africa, it is the largest of only three sovereign enclave and exclave, enclaves in the world, t ...
,
Tanzania Tanzania, officially the United Republic of Tanzania, is a country in East Africa within the African Great Lakes region. It is bordered by Uganda to the northwest; Kenya to the northeast; the Indian Ocean to the east; Mozambique and Malawi to t ...
,
Ghana Ghana, officially the Republic of Ghana, is a country in West Africa. It is situated along the Gulf of Guinea and the Atlantic Ocean to the south, and shares borders with Côte d’Ivoire to the west, Burkina Faso to the north, and Togo to t ...
,
Zambia Zambia, officially the Republic of Zambia, is a landlocked country at the crossroads of Central Africa, Central, Southern Africa, Southern and East Africa. It is typically referred to being in South-Central Africa or Southern Africa. It is bor ...
,
Nigeria Nigeria, officially the Federal Republic of Nigeria, is a country in West Africa. It is situated between the Sahel to the north and the Gulf of Guinea in the Atlantic Ocean to the south. It covers an area of . With Demographics of Nigeria, ...
and the UK. In November 2012, the
Central Bank of Nigeria The Central Bank of Nigeria (CBN) is the central bank and apex monetary authority of Nigeria established by the CBN Act of 1958 and commenced operations on 1 July 1959. The major regulatory objectives of the bank as stated in the CBN Act are t ...
issued the first merchant banking licences in more than a decade to RMB Nigeria and another local firm. In 2024 a UK court ruled against
Close Brothers Group Close Brothers Group plc is a UK merchant banking group which provides lending, takes deposits, manages wealth and trades in securities. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. History Close Brothe ...
and FirstRand for mis-selling loans to car buyers. They had been paying commission to car dealers for recommending their loans, without the dealers revealing the commissions to the car buyers. FirstRand disagreed with the court's findings.


Member companies

FirstRand Group holds its investments through five main subsidiaries. These subsidiaries and their subsidiaries are members of the FirstRand Group and include, but are not limited to, the following: * FirstRand Bank Limited – South Africa provides a comprehensive range of retail, commercial, corporate and investment banking services in South Africa and offers niche products in certain international markets. FirstRand Bank has three major divisions which are separately branded: ** First National Bank is the retail and commercial bank division of FirstRand Bank. ** Rand Merchant Bank is the corporate and investment division of FirstRand Bank. ** WesBank is the instalment finance division of FirstRand Bank. WesBank is South Africa's largest provider of loans for cars. * In addition to the three divisions, FirstRand Bank has branches in London, India and Guernsey, and representative offices in Kenya, Angola, Dubai and Shanghai. * FirstRand Investment Holdings Proprietary Limited (FREMA) – 100% shareholding – South Africa – A holding company for FirstRand Group's financial services companies in the rest of Africa and other emerging markets. Subsidiaries held through FREMA include: **FirstRand International (Mauritius) – 100% shareholding –
Mauritius Mauritius, officially the Republic of Mauritius, is an island country in the Indian Ocean, about off the southeastern coast of East Africa, east of Madagascar. It includes the main island (also called Mauritius), as well as Rodrigues, Ag ...
– A holding company for African investments. **First National Bank Botswana Limited – 69% shareholding –
Botswana Botswana, officially the Republic of Botswana, is a landlocked country in Southern Africa. Botswana is topographically flat, with approximately 70 percent of its territory part of the Kalahari Desert. It is bordered by South Africa to the sou ...
– A commercial bank providing retail and corporate banking. The bank is listed on the Botswana Stock Exchange. **First National Bank of Ghana Limited – 100% shareholding –
Ghana Ghana, officially the Republic of Ghana, is a country in West Africa. It is situated along the Gulf of Guinea and the Atlantic Ocean to the south, and shares borders with Côte d’Ivoire to the west, Burkina Faso to the north, and Togo to t ...
– A commercial bank providing retail and corporate banking. **First National Bank Lesotho Limited – 100% shareholding –
Lesotho Lesotho, formally the Kingdom of Lesotho and formerly known as Basutoland, is a landlocked country in Southern Africa. Entirely surrounded by South Africa, it is the largest of only three sovereign enclave and exclave, enclaves in the world, t ...
– A commercial bank providing retail and corporate banking. **First National Bank Mozambique Limited – 90% shareholding –
Mozambique Mozambique, officially the Republic of Mozambique, is a country located in Southeast Africa bordered by the Indian Ocean to the east, Tanzania to the north, Malawi and Zambia to the northwest, Zimbabwe to the west, and Eswatini and South Afr ...
– A commercial bank providing retail and corporate banking. **First National Bank Namibia Limited – 58% shareholding – Namibia – A commercial bank providing retail and corporate banking. The bank is listed on the Namibia Stock Exchange. ***OUTsurance Namibia – 51% shareholding – Namibia – An insurance company in Namibia. Held through First National Bank Namibia giving the group overall control of 30%. OUTsurance Holdings holds 49% of the venture. **First National Bank Swaziland Limited – 100% shareholding –
Swaziland Eswatini, formally the Kingdom of Eswatini, also known by its former official names Swaziland and the Kingdom of Swaziland, is a landlocked country in Southern Africa. It is bordered by South Africa on all sides except the northeast, where ...
– A commercial bank providing retail and corporate banking. ** First National Bank Tanzania Limited – 100% shareholding –
Tanzania Tanzania, officially the United Republic of Tanzania, is a country in East Africa within the African Great Lakes region. It is bordered by Uganda to the northwest; Kenya to the northeast; the Indian Ocean to the east; Mozambique and Malawi to t ...
– A commercial bank providing retail and corporate banking. **First National Bank Zambia Limited – 100% shareholding –
Zambia Zambia, officially the Republic of Zambia, is a landlocked country at the crossroads of Central Africa, Central, Southern Africa, Southern and East Africa. It is typically referred to being in South-Central Africa or Southern Africa. It is bor ...
– A commercial bank providing retail and corporate banking. **Rand Merchant Bank Nigeria – 100% – shareholding –
Nigeria Nigeria, officially the Federal Republic of Nigeria, is a country in West Africa. It is situated between the Sahel to the north and the Gulf of Guinea in the Atlantic Ocean to the south. It covers an area of . With Demographics of Nigeria, ...
– A corporate and investment bank in Nigeria. * FirstRand International Limited (Guernsey) – 100% shareholding – holding company for UK banking business: ** Aldermore Bank Plc – 100% shareholding – UK specialist bank * FirstRand Investment Holdings Proprietary Limited (FRIHL) – 100% shareholding – South Africa – A holding company for FirstRand Group's other non-banking activities. Subsidiaries held through FRIHL include: ** Direct Axis SA (Pty) Ltd – 100% shareholding – South Africa – A specialist financial services firm ** RMB Private Equity Holdings (Pty) Ltd – 96% shareholding – South Africa ** RMB Private Equity (Pty) Ltd – 93% shareholding – South Africa ** RMB Securities (Pty) Ltd – 100% shareholding – South Africa ** RMB Morgan Stanley (Pty) Ltd – 50% shareholding – South Africa – A
joint venture A joint venture (JV) is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance. Companies typically pursue joint ventures for one of four reasons: to acce ...
with
Morgan Stanley Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in Midtown Manhattan, New York City. With offices in 42 countries and more than 80,000 employees, the firm's clients in ...
. ** RMB Australia Holdings Limited – 100% shareholding –
Australia Australia, officially the Commonwealth of Australia, is a country comprising mainland Australia, the mainland of the Australia (continent), Australian continent, the island of Tasmania and list of islands of Australia, numerous smaller isl ...
– An investment bank in Australia. * FirstRand Investment Management Holdings Limited – 100% shareholding – South Africa – This is the holding company for the group's asset management activities. ** Ashburton Fund Managers (Pty) Limited – 100% shareholding – South Africa ** Ashburton Investor Services (Pty) Limited – 100% shareholding – South Africa ** Ashburton Management Company (Pty) Limited – 100% shareholding – South Africa ** Ashburton Investments International Holdings Limited – 100% shareholding – South Africa ** RMB CIS Management Company (Pty) Limited – 100% shareholding – South Africa * FirstRand Insurance Holdings (Pty) Ltd – 100% shareholding – South Africa – This is the holding company for FirstRand's insurance businesses. Subsidiaries held through FirstRand Insurance Holdings include: ** FirstRand Life Assurance – 100% shareholding – South Africa ** FirstRand Short-Term Insurance Limited – 100% shareholding – South Africa ** FirstRand Insurance Services Company (FRISCOL) – 100% shareholding – South Africa


Ownership

FirstRand is listed on the
Johannesburg Stock Exchange JSE Limited (previously the JSE Securities Exchange and the Johannesburg Stock Exchange) is the largest stock exchange in Africa. It is located in Sandton, Johannesburg, South Africa, after it moved from downtown Johannesburg in 2000. In 2003 ...
and Namibian Stock Exchange. Its major shareholders include: 1→ RMB Holdings large shareholders include directors and management of RMBH with 10.4%, Remgro with 28.2% shareholding in RMBH and Royal Bafokeng Holdings with a 15% stake in RMBH. 2→ Based on its direct and indirect shareholding in FirstRand, Remgro's effective control of the group is 13.36%.


Awards

*Best Banking Performer, South Africa in 2016 by ''Global Brands Magazine''


See also

* List of banks in South Africa *
List of banks in Africa This is a list of banks in Africa, arranged by country in alphabetical order. Since comprehensive lists are available on a country-by-country basis, only the most important domestic banks are indicated for each country. Algeria * Bank of Algeri ...
* Reserve Bank of South Africa * Rand Merchant Insurance Holdings


References


External links

* {{Authority control 1998 establishments in South Africa Publicly traded companies Banks of South Africa FirstRand Banks established in 1998 Financial services companies established in 1998 Companies listed on the Johannesburg Stock Exchange Companies in the FTSE/JSE Top 40 Index South African companies established in 1998