FirstRand’s UK Future Hinges on Motor Finance Decision, CEO Says

FirstRand Ltd. said the fate of its UK unit remains in the balance as it awaits a final ruling over the amount of compensation banks have to pay to consumers over claims they were missold car loans.

“We haven’t made the decision, because the Financial Conduct Authority ultimately has to come with a final redress,” Chief Executive Officer Mary Vilakazi said in an interview from Davos. “If a number of the substantive issues that we raised are not addressed, the amount that we are looking at is such that our business going forward is not going to have the capital resources that are needed to support lending in motors.”