FirstRand Ltd. reported a record interim profit as Africa’s largest bank by market value saw strong growth in both lending and fee income. Normalized earnings jumped 11% to 23.2 billion rand ($1.4 billion) in the six months through December, driven by a 12% increase in non-interest revenue from insurance and private equity realizations.

Net interest income grew 7.7% as lending expanded across South Africa, broader Africa, and the UK. The bank’s return on equity improved to 21.1%, exceeding its target range. South Africa’s central bank has been cutting rates since November, though Middle East conflict has raised uncertainty about future monetary policy.

FirstRand still faces uncertainty over its UK operations, where it awaits final rules on motor finance compensation. The Financial Conduct Authority expects UK auto lenders to spend £11 billion on customer refunds. The bank has set aside more than £200 million but warned the final cost could be higher. FirstRand’s UK business, including its MotoNovo unit, represents about 10% of earnings and 20% of its balance sheet.