South African banking giant FirstRand Ltd. is pulling out of the UK motor-finance market after setting aside £750 million ($994 million) to compensate customers who were allegedly missold car loans. The company announced the decision following mounting claims that borrowers were given loans under misleading terms, forcing the bank to dramatically increase its compensation provision.

The move marks a significant retreat from the UK market for FirstRand, which had been building its presence through acquisitions. The £750 million provision represents a major financial hit and signals the scale of potential misselling claims across the industry. FirstRand's decision to exit rather than continue fighting claims suggests the costs and reputational damage had become unsustainable.

This withdrawal highlights the growing scrutiny of motor-finance practices in the UK, where regulators have been investigating whether lenders properly disclosed terms and risks to borrowers. For FirstRand, the decision ends a costly chapter in its international expansion strategy and refocuses the bank on its core African markets.