First Rand Ltd. profit fell for the first time in six years after a £807 million ($1.1 billion) provision for UK clients’ claims over missold car loans at its British motor-finance unit countered growth from loans and fee income. Earnings declined 5% to 39.7 billion rand ($2.5 billion) in the year to June, the Johannesburg-based lender said Thursday, exceeding the estimate of 39.3 billion rand from analysts surveyed by Bloomberg survey. The provision stemmed from regulatory scrutiny and compensation claims related to mis-sold auto finance products in the UK market.

Despite the hit, underlying lending and fee-based revenue showed resilience, supporting the bank’s broader operational performance.