COMPANY NEWS IN BRIEF

FirstRand expects SA’s economy to shrinkWhile FirstRand expects the South African economy to shrink this year along with a good chance of more rate hikes, it still expects strong earnings growth.In a trading update on Wednesday, the group said the business should deliver underlying earnings growth in the second half similar to that produced in the first half.In its first half, the group grew normalised earnings by 15% to R18 billion. The bank expects its normalised return on equity (ROE) to remain at the upper end of 18% to 22%.The group credited its own financial discipline as well as "good" customer growth for the performance.FirstRand said its customer-facing businesses are resilient and have attracted more customer deposits. RMB grew deposits by an average of 15% in the first half of FirstRand's financial year, and FNB's increased by 11% to R810.9 billion.FirstRand's lending businesses became more conservative in their lending approach during the pandemic up to early 2022. The group's CEO, Alan Pullinger, also attributed FirstRand's special dividend at the end of its 2022 financial year to the decision to tighten lending appetite during that period, even warning that other banks grew their share in "risky income".-Fin24Dutch court confirms Steinhoff’s plansA Dutch court has confirmed Steinhoff's plan to switch from a publicly listed company owned by shareholders to a delisted group under the control of its creditors. The decision was handed down shortly after news broke that a German court had issued an arrest warrant for Steinhoff's former CEO, Markus Jooste. Once one of South Africa's largest and most successful companies, the furniture retailer never truly recovered from the financial shock of a fraud scandal, which has dogged its every step since its Jooste resigned in late 2017.While it sought to keep afloat by selling shares in its subsidiaries and selling off some of its prize assets, its debt burden kept growing larger. After finally facing the reality that it would never be able to pay off its €10.2 billion (R200 billion) debt burden by the due date of 30 June this year, it changed tack to seek out a deal with financial creditors to forestall a messy liquidation. The deal, which has the group's financial creditors taking over 80% of its equity in exchange for a three-year debt repayment holiday, has now been upheld by a Dutch court. The matter was heard in Amsterdam where Steinhoff is registered.-Fin24

COMPANY NEWS IN BRIEF

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