FNB R1bn Ithala Payouts Accelerates Returns to Depositors in Record Time
FNB has made rapid progress in restoring access to frozen Ithala deposits, distributing more than R1 billion to affected customers within...
Quick overview
- FNB has distributed over R1 billion to Ithala customers within 29 days, aiding around 37,000 individuals in accessing their funds.
- Payouts are being conducted in structured phases, with customers notified via SMS to ensure an orderly process.
- FNB CEO Harry Kellan highlighted the achievement as a priority to assist eligible customers efficiently, with extended branch hours during high demand.
- The recovery follows Ithala's liquidation in January 2025, with a R2.2 billion guarantee from National Treasury to protect depositors.
FNB has made rapid progress in restoring access to frozen Ithala deposits, distributing more than R1 billion to affected customers within the first month of the recovery process.
R1bn Paid Out in First Phase
First National Bank (FNB) has disbursed over R1 billion to Ithala customers in just 29 days, marking a key milestone in the ongoing depositor recovery effort. Since payouts began on 8 December 2025, around 37,000 individuals have regained access to their funds, representing close to half of the total value set aside for distribution.
Structured and Phased Process
Payouts are being conducted in clearly defined phases to ensure order and security. Customers are notified via SMS when their funds are ready and advised to visit a branch only once they receive official confirmation. FNB has urged customers to follow this process to avoid congestion and unnecessary delays at branches.
Operational Effort and Branch Support
FNB CEO Harry Kellan described the progress as a significant achievement for the bank’s teams, emphasising that the priority remains assisting every eligible customer in a dignified and efficient manner. During the initial December surge, selected KwaZulu-Natal branches extended operating hours to manage high volumes. As the process moves into 2026, branches have returned to normal trading hours.
Background to the Ithala Crisis
The recovery follows a turbulent period for Ithala, whose depositors lost access to their savings in January 2025 after the South African Reserve Bank’s Prudential Authority placed the institution into liquidation due to regulatory breaches and insolvency concerns. Although commonly referred to as a bank, Ithala operated under a special exemption from the Banks Act, which expired in December 2023.
To protect approximately 250,000 depositors, National Treasury provided a R2.2 billion guarantee, enabling the payout process now being administered by FNB.
FNB has made rapid progress in restoring access to frozen Ithala deposits, distributing more than R1 billion to affected customers within the first month of the recovery process.
R1bn Paid Out in First Phase
First National Bank (FNB) has disbursed over R1 billion to Ithala customers in just 29 days, marking a key milestone in the ongoing depositor recovery effort. Since payouts began on 8 December 2025, around 37,000 individuals have regained access to their funds, representing close to half of the total value set aside for distribution.
Structured and Phased Process
Payouts are being conducted in clearly defined phases to ensure order and security. Customers are notified via SMS when their funds are ready and advised to visit a branch only once they receive official confirmation. FNB has urged customers to follow this process to avoid congestion and unnecessary delays at branches.
Operational Effort and Branch Support
FNB CEO Harry Kellan described the progress as a significant achievement for the bank’s teams, emphasising that the priority remains assisting every eligible customer in a dignified and efficient manner. During the initial December surge, selected KwaZulu-Natal branches extended operating hours to manage high volumes. As the process moves into 2026, branches have returned to normal trading hours.
Background to the Ithala Crisis
The recovery follows a turbulent period for Ithala, whose depositors lost access to their savings in January 2025 after the South African Reserve Bank’s Prudential Authority placed the institution into liquidation due to regulatory breaches and insolvency concerns. Although commonly referred to as a bank, Ithala operated under a special exemption from the Banks Act, which expired in December 2023.
To protect approximately 250,000 depositors, National Treasury provided a R2.2 billion guarantee, enabling the payout process now being administered by FNB.
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