FirstRand Bank Limited (South Africa)
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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 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 condit ...
, 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, Namibia,
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,
Lesotho Lesotho ( ), officially the Kingdom of Lesotho, is a country landlocked country, landlocked as an Enclave and exclave, enclave in South Africa. It is situated in the Maloti Mountains and contains the Thabana Ntlenyana, highest mountains in Sou ...
, Zambia, Mozambique, Tanzania, Ghana and Nigeria. FirstRand Bank has branches in London,
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and India. 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, South Africa. FirstRand is one of the five largest banking groups in South Africa and
sub-Saharan Africa Sub-Saharan Africa is, geographically, the area and regions of the continent of Africa that lies south of the Sahara. These include West Africa, East Africa, Central Africa, and Southern Africa. Geopolitically, in addition to the List of sov ...
.


History

The FirstRand group's history traces back to the 1970s as an investment bank. 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) 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 wereconstituted 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 authorized 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 national banking regulator. The group has subsidiaries in South Africa and in the countries of Botswana, Mozambique, Namibia,
Lesotho Lesotho ( ), officially the Kingdom of Lesotho, is a country landlocked country, landlocked as an Enclave and exclave, enclave in South Africa. It is situated in the Maloti Mountains and contains the Thabana Ntlenyana, highest mountains in Sou ...
, Tanzania, Ghana, Zambia, 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 ...
issued the first merchant banking licences in more than a decade to RMB Nigeria and another local firm.


Member companies

FirstRand Group holds its investments through five main subsidiaries. These subsidiaries and their subsidiaries are therefore are members of the FirstRand Group 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, i.e.: ** First National Bank – FNB is the retail and commercial bank division of FirstRand Bank. ** Rand Merchant Bank – RMB is the corporate and investment division of FirstRand Bank. ** WesBank – Is the installment 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 – A holding company for African investments. **First National Bank Botswana Limited – 69% Shareholding – Botswana – 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 – A commercial bank providing retail and corporate banking. **First National Bank Lesotho Limited – 100% Shareholding –
Lesotho Lesotho ( ), officially the Kingdom of Lesotho, is a country landlocked country, landlocked as an Enclave and exclave, enclave in South Africa. It is situated in the Maloti Mountains and contains the Thabana Ntlenyana, highest mountains in Sou ...
– A commercial bank providing retail and corporate banking. **First National Bank Mozambique Limited – 90% Shareholding – Mozambique – 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 The Namibian Stock Exchange (NSX) ( af, Namibiese Effektebeurs; german: Börse Namibia) is the only stock exchange in Namibia. Based in Windhoek, it is one of List of African stock exchanges, the largest stock exchanges on the African continent. I ...
. ***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 OUTsurance Holdings Limited, commonly referred to as OUTsurance, is a subsidiary of OUTsurance Group Limited (OUTsure, a JSE listed entity), a South African based financial services investment holding company. OUTsurance Holdings Limited was fo ...
holds 49% of the venture. **First National Bank Swaziland Limited – 100% Shareholding –
Swaziland Eswatini ( ; ss, eSwatini ), officially the Kingdom of Eswatini and formerly named Swaziland ( ; officially renamed in 2018), is a landlocked country in Southern Africa. It is bordered by Mozambique to its northeast and South Africa to its no ...
– A commercial bank providing retail and corporate banking. ** First National Bank Tanzania Limited – 100% Shareholding – Tanzania – A commercial bank providing retail and corporate banking. **First National Bank Zambia Limited – 100% Shareholding – Zambia – A commercial bank providing retail and corporate banking. **Rand Merchant Bank Nigeria – 100% – Shareholding – 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 with Morgan Stanley. ** RMB Australia Holdings Limited – 100% Shareholding –
Australia Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...
– 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 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 Award.


See also

*
List of banks in South Africa This is a list of commercial banks in South Africa Banks Locally controlled banks * Absa Group Limited * African Bank Limited * Bidvest Bank Limited * Capitec Bank Limited * Discovery Limited * First National Bank * FirstRand Bank - A subsid ...
* List of banks in Africa *
Reserve Bank of South Africa 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 condit ...
* Rand Merchant Insurance Holdings


References


External links

* {{Banks of South Africa 1998 establishments in South Africa Publicly traded companies Banks of South Africa FirstRand Companies based in Johannesburg Banks established in 1998 Financial services companies established in 1998 Companies listed on the Johannesburg Stock Exchange South African companies established in 1998